ALCOA CORPORATION - [PDF Document] (2024)

UNITED STATESSECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549FORM 10-K

(MarkOne)☒ ANNUALREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934

For The Fiscal Year Ended December 31, 2020OR

☐ TRANSITIONREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934

For the transition period from _______ to _______Commission File Number 1-37816

ALCOA CORPORATION(ExactNameofRegistrantasSpecifiedinCharter)

Delaware 81-1789115(StateorOtherJurisdiction

ofIncorporationorOrganization)

(I.R.S.EmployerIdentificationNo.)

201 Isabella Street, Suite 500,

Pittsburgh, Pennsylvania(AddressofPrincipalExecutiveOffices)

15212-5858(ZipCode)

Registrant’stelephonenumber,includingareacode:412-315-2900SecuritiesregisteredpursuanttoSection12(b)oftheAct:

Titleofeachclass TradingSymbol(s) NameofeachexchangeonwhichregisteredCommon Stock, par value $0.01 per share AA New York Stock Exchange

SecuritiesregisteredpursuanttoSection12(g)oftheAct:

None(TitleofClass)

Indicatebycheckmarkiftheregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.

Yes☑No☐IndicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13orSection15(d)oftheAct.

Yes☐No☑Indicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.

Yes☑No☐IndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyeveryInteractiveDataFilerequiredtobesubmittedpursuanttoRule405ofRegulationS-T(§232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitsuchfiles).

Yes☑No☐Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,asmallerreportingcompany,oranemerginggrowthcompany.Seethedefinitionsof“largeacceleratedfiler,”“acceleratedfiler,”“smallerreportingcompany,”and“emerginggrowthcompany”inRule12b-2oftheExchangeAct.

Largeacceleratedfiler☑Acceleratedfiler☐Non-acceleratedfiler☐Smallerreportingcompany☐Emerginggrowthcompany☐Ifanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct.☐Indicatebycheckmarkwhethertheregistranthasfiledareportonandattestationtoitsmanagement’sassessmentoftheeffectivenessofitsinternalcontroloverfinancialreportingunderSection404(b)oftheSarbanes-OxleyAct(15U.S.C.7262(b))bytheregisteredpublicaccountingfirmthatpreparedorissueditsauditreport. ☑

Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheAct).Yes☐No☑Theaggregatemarketvalueoftheregistrant’svotingstockheldbynon-affiliatesatJune30,2020wasapproximately$2.1billion,basedontheclosingpricepershareofCommonStockonJune30,2020of$11.24asreportedontheNewYorkStockExchange.AsofFebruary19,2021,therewas186,251,518sharesoftheregistrant’scommonstock,parvalue$0.01pershare,outstanding.

Documents incorporated by reference.PartIIIofthisForm10-Kincorporatesbyreferencecertaininformationfromtheregistrant’sDefinitiveProxyStatementforits2021AnnualMeetingofStockholderstobefiledpursuanttoRegulation14A.

TABLE OF CONTENTS Page(s) PartI Item1. Business 1Item1A. RiskFactors 18Item1B. UnresolvedStaffComments 30Item2. Properties 30Item3. LegalProceedings 30Item4. MineSafetyDisclosures 31PartII Item5. MarketforRegistrant’sCommonEquity,RelatedStockholderMattersandIssuerPurchasesofEquitySecurities 32Item6. SelectedFinancialData 35Item7. Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations 36Item7A. QuantitativeandQualitativeDisclosuresAboutMarketRisk 56Item8. FinancialStatementsandSupplementaryData 57Item8A. SupplementalFinancialInformation 116Item9. ChangesinandDisagreementsWithAccountantsonAccountingandFinancialDisclosure 117Item9A. ControlsandProcedures 117Item9B. OtherInformation 117PartIII Item10. Directors,ExecutiveOfficersandCorporateGovernance 118Item11. ExecutiveCompensation 118Item12. SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholderMatters 118Item13. CertainRelationshipsandRelatedTransactions,andDirectorIndependence 118Item14. PrincipalAccountingFeesandServices 118PartIV Item15. ExhibitandFinancialStatementSchedules 119Item16. Form10-KSummary 122 Signatures 123

Note on Incorporation by Reference

InthisForm10-K,selecteditemsofinformationanddataareincorporatedbyreferencetoportionsofAlcoaCorporation’sDefinitiveProxyStatementforits2021AnnualMeetingofStockholders(ProxyStatement),whichwillbefiledwiththeSecuritiesandExchangeCommissionwithin120daysaftertheendofAlcoaCorporation’sfiscalyearendedDecember31,2020.Unlessotherwiseprovidedherein,anyreferenceinthisForm10-KtodisclosuresintheProxyStatementshallconstituteincorporationbyreferenceofonlythatspecificdisclosureintothisForm10-K.

PART I

Item 1. Business.

(dollarsinmillions,exceptper-shareamounts,averagerealizedprices,andaveragecostamounts)

The Company

AlcoaCorporation,aDelawarecorporation,becameanindependent,publiclytradedcompanyonNovember1,2016,followingitsseparationfrom(theSeparationTransaction)itsformerparentcompany,AlcoaInc.(ParentCo).“Regular-way”tradingofAlcoaCorporation’scommonstockbeganwiththeopeningoftheNewYorkStockExchange(NYSE)onNovember1,2016underthetickersymbol“AA.”AlcoaCorporation’scommonstockhasaparvalueof$0.01pershare.AlcoaCorporation’sprincipalexecutiveofficeislocatedinPittsburgh,Pennsylvania.Inthisreport,unlessthecontextotherwiserequires,theterms“Alcoa,”the“Company,”“we,”“us,”and“our”refertoAlcoaCorporationandallsubsidiariesconsolidatedforthepurposesofitsfinancialstatements.

Referenceshereinto“ParentCo”refertoAlcoaInc.,aPennsylvaniacorporation,anditsconsolidatedsubsidiariesthroughOctober31,2016,atwhichtimeitwasrenamedArconicInc.(Arconic)andsincehasbeensubsequentlyrenamedHowmetAerospaceInc.

AlcoaCorporation(previouslyknownasAlcoaUpstreamCorporation)wasformedinDelawareinMarch2016forthepurposeofholdingParentCo’sBauxite,Alumina,Aluminum,CastProductsandEnergybusinesses,aswellasParentCo’srollingmilloperationsinWarrick,Indiana,and25.1%interestintheMa’adenRollingCompanyintheKingdomofSaudiArabia(SaudiArabia).AlcoaUpstreamCorporationwasrenamedAlcoaCorporationinconnectionwiththeSeparationTransaction.AlcoaCorporationenteredintocertainagreementswithParentCotoimplementthelegalandstructuralseparationbetweenthetwocompaniestogoverntherelationshipbetweenAlcoaCorporationandParentCoafterthecompletionoftheSeparationTransactionandallocatebetweenAlcoaCorporationandParentCovariousassets,liabilitiesandobligations,including,amongotherthings,employeebenefits,environmentalliabilities,intellectualproperty,andtax-relatedassetsandliabilities.

Alcoaisaglobalindustryleaderinbauxite,alumina,andaluminumproducts.TheCompanyisbuiltonafoundationofstrongvaluesandoperatingexcellencedatingbackover130yearstotheworld-changingdiscoverythatmadealuminumanaffordableandvitalpartofmodernlife.Sincedevelopingthealuminumindustry,andthroughoutourhistory,ourtalentedAlcoanshavefollowedonwithbreakthroughinnovationsandbestpracticesthathaveledtoefficiency,safety,sustainability,andstrongercommunitieswhereverweoperate.

Alcoaisaglobalcompanywithdirectandindirectownershipof28operatinglocationsacrossninecountries.TheCompany’soperationsconsistofthreereportablebusinesssegments:Bauxite,Alumina,andAluminum.TheBauxiteandAluminasegmentsprimarilyconsistofaseriesofaffiliatedoperatingentitiesheldinAlcoaWorldAluminaandChemicals,aglobal,unincorporatedjointventurebetweenAlcoaandAluminaLimited(describedbelow).TheAluminumsegmentconsistsoftheCompany’saluminumsmelting,casting,androllingbusinesses,alongwiththemajorityoftheenergyproductionbusiness.

Aluminum,asanelement,isabundantintheearth’scrust,butamulti-stepprocessisrequiredtomakealuminummetal.Aluminummetalisproducedbyrefiningaluminaoxidefrombauxiteintoalumina,whichisthensmeltedintoaluminumandcanbecastandrolledintomanyshapesandforms.AluminumisacommoditytradedontheLondonMetalExchange(LME)andpriceddaily.Alumina,anintermediaryproduct,issubjecttomarketpricingthroughtheAluminaPriceIndex(API).Asaresult,thepricesofbothaluminumandaluminaaresubjecttosignificantvolatilityand,therefore,influencetheoperatingresultsofAlcoa.

Business Strategy

InOctober2019,theCompanyannouncedseveralstrategicactionstodrivelowercostsandsustainableprofitability.Theseannouncedactionsincludedanewoperatingmodel,realigningtheoperatingportfoliooverthefollowingfiveyearsthroughareviewof1.5millionmetrictonsofsmeltingcapacityand4millionmetrictonsofrefiningcapacity,andthesaleofnon-coreassetsoverthefollowingtwelvetoeighteenmonthperiodwiththegoalofgenerating$500to$1,000.Aftertheportfoliotransformation,theCompanyexpectstobethelowestemitterofcarbondioxideamongallglobalaluminumcompanies,pertonofemissionsinbothsmeltingandrefining,andaimstomoveitsaluminumportfoliotoafirstquartilecostposition.Inaddition,Alcoaanticipatesthatupto85percentofitssmeltingportfoliowillbepoweredbyrenewableenergy,buildingupontheCompany’sexistingsustainabilityprofileandinsupportofitsstrategicpriorityto“advancesustainably.”

Thenewoperatingmodel,effectiveNovember1,2019,resultedinaleaner,moreintegrated,operator-centricorganization.Withastreamlinedexecutiveteamwhicheliminatedthebusinessunitstructure,themodelincreasedconnectivitybetween

theCompany’soperationsandleadership,consolidatedsales,procurementandothercommercialcapabilitiesatanenterpriselevel,andreducedoverhead.TheCompanyrealized$60inannualsavingsbeginninginthesecondquarterof2020.

Fortheportfolioreview,theCompanyplaced1.5millionmetrictonsofaluminumsmeltingcapacityand4millionmetrictonsofaluminarefiningcapacityunderreview,consideringopportunitiesforsignificantimprovement,potentialcurtailments,closures,ordivestitures.In2020,theCompanyprogresseditsreviewofsmeltingandrefiningproductioncapacity.SeePartIIItem7ofthisForm10-KinManagement’sDiscussionandAnalysisofFinancialConditionandResultsofOperationsundercaptionBusinessUpdate.

TheCompanymetthetargetrangeforournon-coreassetsalesthroughthesaleofourhazardouswastetreatmentbusinessinGumSprings,ArkansasthatclosedinJanuary2020andourannouncedagreementtosellourWarrickrollingmillbusinessinasaleexpectedtoclosebytheendofthefirstquarterof2021,subjecttocustomaryclosingconditions.

TheCompany’sstrategicpriorityto“advancesustainably”includesmaintainingtheCompany’ssociallicensetooperate,reducingrisksandimprovingprofitabilitythroughproductdifferentiation.In2020,theCompanylaunchedtheworld’sfirstlow-carbonaluminabrand,achievedAluminiumStewardshipInitiative(ASI)certificationforadditionaloperatingassets,andobtainedASI’sChainofCustodycertificationformarketingourproducts.

Joint Ventures

Alcoa World Alumina and Chemicals (AWAC)

AWACisanunincorporatedglobaljointventurebetweenAlcoaCorporationandAluminaLimited,acompanyincorporatedunderthelawsoftheCommonwealthofAustraliaandlistedontheAustralianSecuritiesExchange.AWACconsistsofanumberofaffiliatedentitiesthatown,operateorhaveaninterestinbauxiteminesandaluminarefineries,aswellasanaluminumsmelter,insevencountries.AlcoaCorporationowns60%andAluminaLimitedowns40%oftheseentities,directlyorindirectly,withsuchentitiesbeingconsolidatedbyAlcoaCorporationforfinancialreportingpurposes.ThescopeofAWACgenerallyincludestheminingofbauxiteandotheraluminousores;therefining,production,andsaleofsmeltergradeandnon-metallurgicalalumina;andtheproductionofcertainprimaryaluminumproducts.

AlcoaprovidestheoperatingmanagementforAWAC,whichissubjecttodirectionprovidedbytheStrategicCouncilofAWAC.TheStrategicCouncilconsistsoffivemembers,threeofwhomareappointedbyAlcoa(ofwhichoneistheChair),andtwoofwhomareappointedbyAluminaLimited(ofwhichoneistheDeputyChair).Mattersaredecidedbyamajorityvotewithcertainmattersrequiringapprovalbyatleast80%ofthemembers,including:changestothescopeofAWAC;changesinthedividendpolicy;equitycallsinaggregategreaterthan$1,000inanyyear;salesofalloramajorityoftheAWACassets;loansfromAWACcompaniestoAlcoaorAluminaLimited;certainacquisitions,divestitures,expansions,curtailmentsorclosures;certainrelated-partytransactions;financialderivatives,hedgesorswaptransactions;adecisionbyAWACentitiestofileforinsolvency;andchangestopricingformulaincertainofftakeagreementswhichmaybeenteredintobetweenAWACentitiesandAlcoaorAluminaLimited.

AWAC Operations

AWACentities’assetsincludethefollowinginterests: • 100%ofthebauxitemining,aluminarefining,andaluminumsmeltingoperationsofAlcoa’saffiliate,AlcoaofAustraliaLimited(AofA); • 100%oftheJurutibauxitedepositandmineinBrazil; • 45%interestinHalco(Mining)Inc.,abauxiteconsortiumthatownsa51%interestinCompagniedesBauxitesdeGuinée(CBG),abauxiteminein

Guinea; • 9.62%interestinthebauxiteminingoperationsinBrazilofMineraçãoRioDoNorte(MRN),aBraziliancompany; • 39.96%interestintheSãoLuísrefineryinBrazil; • 55%interestinthePortland,AustraliasmelterthatAWACmanagesonbehalfofthejointventurepartners; • 25.1%interestinthemineandrefineryinRasAlKhair,SaudiArabia; • 100%oftherefineryandalumina-basedchemicalsassetsatSanCiprián,Spain; • 100%interestinvariousassetsformerlyusedforminingandrefiningintheRepublicofSuriname(Suriname); • 100%oftherefineryassetsattheclosedfacilityinPointComfort,Texas,UnitedStates;and • 100%ofAlcoaSteamshipCompanyInc.,acompanythatprocuresoceanfreightandcommercialshippingservicesforAlcoaintheordinarycourseof

business.

Exclusivity

Underthetermsoftheirjointventureagreements,AlcoaandAluminaLimitedhaveagreedthat,subjecttocertainexceptions,AWACistheirexclusivevehiclefortheirinvestments,operationsorparticipationinthebauxiteandaluminabusiness,andtheywillnotcompetewithAWACinthosebusinesses.IntheeventofachangeofcontrolofeitherAlcoaorAluminaLimited,thisexclusivityandnon-competerestrictionwillterminate,andthepartnerswillthenhaveopportunitiestounilaterallypursuebauxiteoraluminaprojectsoutsideoforwithinAWAC,subjecttocertainconditionsprovidedintheAmendedandRestatedCharteroftheStrategicCouncil.

Equity Calls

ThecashflowofAWACandborrowingsarethepreferredsourcesoffundingfortheneedsofAWAC.Anequitycallcanbemadeon30days’notice,subjecttocertainlimitations,intheeventtheaggregateannualcapitalbudgetofAWACrequiresanequitycontributionfromAlcoaandAluminaLimited.

Dividend Policy

AWACwillgenerallyberequiredtodistributeatleast50%ofthepriorcalendarquarter’snetincomeofeachAWACentity,andcertainAWACentitieswillalsoberequiredtopayadistributioneverythreemonthsequaltotheamountofavailablecashabovespecifiedthresholdsandsubjecttotheforecastcashneedsoftheAWACentity.

Leveraging Policy

DebtofAWACissubjecttoalimitof30%oftotalcapital(definedasthesumofdebt(netofcash)plusanyminorityinterestplusshareholderequity).TheAWACjointventurehasraisedalimitedamountofdebttofundgrowthprojectsaspermittedunderAlcoa’srevolvingcreditline,andinaccordancewiththejointventurepartnershipagreements.

Saudi Arabia Joint Venture

InDecember2009,AlcoaenteredintoajointventurewiththeSaudiArabianMiningCompany(Ma’aden),whichwasformedbythegovernmentofSaudiArabiatodevelopitsmineralresourcesandcreateafullyintegratedaluminumcomplexinSaudiArabia.Ma’adenislistedontheSaudiStockExchange(Tadawul).Thecomplexincludesabauxiteminewithacapacityof4milliondrymetrictonsperyear;analuminarefinerywithacapacityof1.8millionmetrictonsperyear(mtpy);analuminumsmelterwithacapacityofingot,slabandbilletof740,000mtpy;andarollingmillwithacapacityof460,000mtpy.

Thejointventureiscurrentlycomprisedoftwoentities:theMa’adenBauxiteandAluminaCompany(MBAC)andtheMa’adenAluminiumCompany(MAC).Ma’adenownsa74.9%interestintheMBACandMACjointventure.Alcoaownsa25.1%interestinMAC,whichholdsthesmelter;AWACholdsa25.1%interestinMBAC,whichholdsthemineandrefinery.InJune2019,thejointventureagreementwasamended,transferringAlcoa’s25.1%interestintheMa’adenRollingCompany(MRC),whichwaspreviouslypartofthejointventure,toMa’aden,amongotherthings.SeePartIIItem8ofthisForm10-KinNoteCtotheConsolidatedFinancialStatements.TherefineryandsmelterarelocatedwithintheRasAlKhairindustrialzoneontheeastcoastofSaudiArabia.

Ma’adenandAlcoaCorporationhaveputandcalloptions,respectively,wherebyMa’adencanrequireAlcoaCorporationtopurchasefromMa’aden,orAlcoaCorporationcanrequireMa’adentoselltoAlcoaCorporation,a14.9%interestinMBACandMACatthethenfairmarketvalue.Theseoptions,ifexercised,mustbeexercisedforthefull14.9%interestinbothentities.TheamendedjointventureagreementdefinesOctober1,2021asthedateafterwhichMa’adenandAlcoaCorporationcanexercisetheirputandcalloptions,respectively.TheamendedjointventureagreementfurtheroutlinesthattheseoptionsareexercisableforaperiodofsixmonthsafterOctober1,2021.

TheamendedjointventureagreementalsodefinesOctober1,2021asthedateafterwhichAlcoaCorporationispermittedtosellallofitssharesinbothMBACandMACcollectively,forwhichMa’adenhasarightoffirstrefusal.Priortothisdate,Ma’adenandAlcoaCorporationmaynotsell,transfer,orotherwisedisposeof,pledge,orencumberanyinterestsinthejointventure.Undertheamendedjointventureagreement,upontheoccurrenceofanunremediedeventofdefaultbyAlcoaCorporation,Ma’adenmaypurchase,or,upontheoccurrenceofanunremediedeventofdefaultbyMa’aden,AlcoaCorporationmaysell,itsinterestinthejointventureforconsiderationthatvariesdependingonthetimeofthedefault.

Others

TheCompanyispartytoseveralotherjointventuresandconsortia.Seeadditionaldetailswithineachbusinesssegmentdiscussionbelow.

TheAlumineriedeBécancourInc.(ABI)smelterisajointventurebetweenAlcoaandRioTintoAlcanInc.(RioTinto)locatedinBécancour,Québec.Alcoaowns74.95%ofthejointventurethroughtheequityinvestmentinPechineyReynolds

Quebec,Inc.,whichownsa50.1%shareofthesmelter,andtwowholly-ownedCanadiansubsidiaries,whichown49.9%ofthesmelter.RioTintoownstheremaining25.05%interestinthejointventure.

CBGisajointventurebetweenBokéInvestmentCompany(51%)andtheGovernmentofGuinea(49%)fortheoperationofabauxitemineintheBokéregionofGuinea.BokéInvestmentCompanyisowned100%byHalco(Mining)Inc.;AWALLCholdsa45%interestinHalco.AWALLCispartoftheAWACgroupofcompaniesandisultimatelyowned60%byAlcoaand40%byAluminaLimited.

MRNisajointventurebetweenAlcoaAlumínio(8.58%),AWABrasil(4.62%)andAWALLC(5%),eachasubsidiaryofAlcoa,andaffiliatesofRioTinto(12%),CompanhiaBrasileiradeAlumínio(10%),ValeS.A.(Vale)(40%),South32(14.8%),andNorskHydro(5%)fortheoperationofabauxitemineinPortoTrombetasinthestateofParáinBrazil.AWABrasilandAWALLCarepartoftheAWACgroupofcompaniesandareultimatelyowned60%byAlcoaand40%byAluminaLimited.

Alumarisajointventurefortheoperationofarefinery,smelter,andcasthouseinBrazil.TherefineryisownedbyAWABrasil(39.96%),RioTinto(10%),AlcoaAlumínio(14.04%),andSouth32(36%).AWABrasilispartoftheAWACgroupofcompaniesandisultimatelyowned60%byAlcoaand40%byAluminaLimited.WithrespecttoRioTintoandSouth32,thenamedcompanyoranaffiliatethereofholdstheinterest.ThesmelterandcasthouseareownedbyAlcoaAlumínio(60%)andSouth32(40%).

ElysisTMLimitedPartnership(ElysisTM)isajointventurebetweenthewholly-ownedsubsidiariesofAlcoa(48.235%)andRioTinto(48.235%),respectively,andInvestissem*ntQuébec(3.53%),acompanywholly-ownedbytheGovernmentofQuébec,Canada.ThepurposeofElysisTMistoadvancelargerscaledevelopmentandcommercializationofitspatent-protectedtechnologythatproducesoxygenandeliminatesalldirectgreenhousegasemissionsfromthetraditionalaluminumsmeltingprocess.

StrathconacalcinerisajointventurebetweenaffiliatesofAlcoaandRioTinto.Thecalcinerpurchasesgreenco*kefromthepetroleumindustryandconvertsitintocalcinedco*ke.Thecalcinedco*keisthenusedasarawmaterialinanaluminumsmelter.Alcoaowns39%ofthejointventure,andRioTintoownstheremaining61%ofthejointventure.

Hydropower

MachadinhoHydroPowerPlant(HPP)isaconsortiumlocatedonthePelotasRiverinsouthernBrazilinwhichtheCompanyhasa25.8%ownershipinterestthroughAlcoaAlumínio.Theremainingownershipinterestsareheldbyunrelatedthirdparties.

BarraGrandeHPPisajointventurelocatedonthePelotasRiverinsouthernBrazilinwhichtheCompanyhasa42.2%ownershipinterestthroughAlcoaAlumínio.Theremainingownershipinterestsareheldbyunrelatedthirdparties.

EstreitoHPPisaconsortiumbetweenAlcoaAlumínio,throughEstreitoEnergiaS.A.(25.5%)andunrelatedthirdpartieslocatedontheTocantinsRiver,northernBrazil.

SerradoFacãoHPPisajointventurebetweenAlcoaAlumínio(34.9%)andunrelatedthirdpartieslocatedontheSaoMarcosRiver,centralBrazil.

ManicouaganPowerLimitedPartnership(Manicouagan)isajointventurebetweenaffiliatesofAlcoaandHydro-Québec.Manicouaganownsandoperatesthe335megawattMcCormickhydroelectricproject,whichislocatedontheManicouaganRiverintheProvinceofQuébec,Canada.Alcoaowns40%ofthejointventure.

Bauxite

ThissegmentconsistsoftheCompany’sglobalbauxiteminingoperations.Bauxiteistheprincipalrawmaterialusedtoproducealuminaandcontainsvariousaluminumhydroxideminerals,themostimportantofwhicharegibbsiteandboehmite.BauxiteisrefinedusingtheBayerprocess,theprincipalindustrialchemicalprocessforrefiningbauxitetoproducealumina,acompoundofaluminumandoxygenthatistherawmaterialusedbysmelterstoproducealuminummetal.BauxiteisAlcoa’sbasicrawmaterialinputforitsaluminarefiningprocess.TheCompanyobtainsbauxitefromitsownresourcesandfromthosebelongingtoAWAC,locatedinthecountrieslistedinthetablebelow,aswellaspursuanttobothlong-termandshort-termcontractsandminingleases.Tonsofbauxitearereportedonazero-moisturebasisasdrymetrictonsunlessotherwisestated.

Alcoaprocessesmostofthebauxitethatitminesintoaluminaandsellstheremaindertothirdparties.In2020,Alcoa-operatedminesproduced41.1milliondmtandminesoperatedbypartnershipsinwhichAlcoaandAWAChaveequityinterestsproduced6.9milliondmtonaproportionalequitybasis,foratotalCompanybauxiteproductionof48.0milliondmt.

Basedonthetermsofitsbauxitesupplycontracts,theamountofbauxiteAWACpurchasesfromitsminority-ownedjointventuresMRNandCBGdifferfromitsproportionalequityinthosemines.Therefore,in2020,Alcoahadaccessto48.7milliondmtofproductionfromitsportfolioofbauxiteinterestsandsold6.5milliondmtofbauxitetothirdparties;42.2milliondmtofbauxitewasdeliveredtoAlcoaandAWACrefineries.

TheCompanyaimstogrowitsthird-partybauxitesalesbusiness.InDecember2016,theGovernmentofWesternAustraliagrantedpermissiontoAlcoa’smajority-ownedsubsidiary,AofA,toexportupto2.5milliondmtperyearofbauxiteforfiveyearstothird-partycustomers.Supplytothird-partycustomersbeyond2021willrequireapprovalfromtheGovernmentofWesternAustralia.Theprimarycustomerbaseforthird-partybauxiteislocatedinAsia,particularlyinChina.

Bauxite Resource and Reserve Development Guidelines

TheCompanyhasaccesstolargebauxitedepositareaswithminingrightsthatextendinmanycasesmorethan15yearsfromthedateofthisreport.Forpurposesofevaluatingtheamountofbauxitethatwillbeavailabletosupplyitsrefineries,theCompanyconsidersbothestimatesofbauxiteresourcesaswellascalculatedbauxitereserves.“Bauxiteresources” aredepositsforwhichtonnage,densities,shape,physicalcharacteristics,gradeandmineralcontentcanbeestimatedwithareasonablelevelofconfidence(basedontheamountofexplorationsamplingandtestinginformationgatheredthroughappropriatetechniquesfromlocationssuchasoutcrops,trenches,pits,workingsanddrillholes),suchthattherearereasonableprospectsforeconomicextraction.“Bauxitereserves”representthepartofresourcedepositsthatcanbeeconomicallyminedtosupplyaluminarefineries,andincludedilutingmaterialsandallowancesforlosses,whichmayoccurwhenthematerialismined.Appropriateassessmentsandstudieshavebeencarriedouttodefinethereserves,andincludeconsiderationofandmodificationbyrealisticallyassumedmining,metallurgical,economic,marketing,legal,environmental,socialandgovernmentalfactors.Alcoaemploysaconventionalapproach(includingadditionaldrillingwithsuccessivetighteningofthedrillinggrid)withcustomizedtechniquestodefineandcharacterizeitsvariousbauxitedeposittypesallowingtheCompanytoconfidentlyestablishtheextentofitsbauxiteresourcesandtheirultimateconversiontoreserves.

Alcoahasadoptedbestpracticeguidelinesforbauxitereserveandresourceclassificationatit*operatingbauxitemines.Alcoa’sreservesaredeclaredinaccordancewiththeJointOreReservesCommittee(JORC)codeguidelines.Thereportedorereservessetforthinthetablebelowarethosethatweestimatedcouldbeextractedeconomicallywithcurrenttechnologyandincurrentmarketconditions.Wedonotuseapriceforbauxite,aluminaoraluminumtodetermineourbauxitereserves.Theprimarycriteriafordeterminingbauxitereservesarethefeedspecificationsrequiredbythereceivingaluminarefinery.Morespecifically,reservesaresetbasedonthechemicalcompositionofthebauxiteinordertominimizebauxiteprocessingcostandmaximizerefineryeconomicsforeachindividualrefinery.Theprimaryspecificationsthatareimportanttothisanalysisarethe“availablealumina”contentofthebauxite,whichistheamountofaluminaextractablefrombauxiteusingtheBayerprocess,and“reactivesilica”contentofthebauxite,whichistheamountofsilicathatisreactivewithintheBayerprocess.Eachaluminarefinerywillhaveatargetspecificationfortheseparameters,butmayreceivebauxitewithinarangethatallowsblendinginstockpilestoachievethereceivingrefinery’starget.

Inadditiontothesechemicalspecifications,severalotherorereservedesignfactorshavebeenappliedtodifferentiatebauxitereservesfromothermineralizedmaterial.Thecontoursofthebauxitereservesaredesignedusingparameterssuchasavailablealuminacontentcutoffgrade,reactivesilicacutoffgrade,oredensity,overburdenthickness,orethicknessandmineaccessconsiderations.Theseparametersaregenerallydeterminedbyusinginfilldrillingorgeologicalmodeling.Further,ourmininglocationsutilizeannualin-filldrillingorgeologicalmodelingprogramsdesignedtoprogressivelyupgradethereserveandresourceclassificationoftheirbauxitebasedontheabove-describedfactors.

ThefollowingtableonlyincludestheamountofprovenandprobablereservescontrolledbytheCompany.Whilethelevelofreservesmayappearlowinrelationtoannualproductionlevels,theyareconsistentwithhistoricallevelsofreservesfortheCompany’smininglocationsandconsistentwiththeCompanyreservesstrategy.GiventheCompany’sextensivebauxiteresources,theabundantsupplyofbauxiteglobally,andthelengthoftheCompany’srightstobauxite,itisnotcost-effectivetoestablishbauxitereservesthatreflectthetotalsizeofthebauxiteresourcesavailabletotheCompany.Rather,bauxiteresourcesareupgradedannuallytoreservesasneededbythelocation.Detailedassessmentsareprogressivelyundertakenwithinaproposedminingareaandmineactivityisthenplannedtoachieveauniformqualityinthesupplyofblendedfeedstocktotherelevantrefinery.Alcoabelievesitspresentsourcesofbauxiteonaglobalbasisaresufficienttomeettheforecastedrequirementsofitsaluminarefiningoperationsfortheforeseeablefuture.

Bauxite Interests, Share of Reserves and Annual Production1

Country Project

Owners’ MiningRights

(% Entitlement)

Expiration Date of Mining Rights

Probable Reserves2 (million

dmt)

Proven Reserves2 (million

dmt)

Available Alumina Content

(%) A.Al2O3

Reactive Silica

Content (%)

R.SiO2

2020 Annual

Production (million

dmt) Ore Reserve Design Factors

Australia

DarlingRangeMinesML1SA

AlcoaofAustraliaLimited(AofA)(100%)

2024

95.8

43.2

32.0

1.0

34.8

• A.Al2O3≥27.5%• R.SiO2≤3.5%• Minimummineablethickness1.5m• Minimumbenchwidthsof45m

BrazilPoçosdeCaldas

AlcoaAlumínioS.A.(AlcoaAlumínio)3(100%)

20314 0.1 0.7 38.5 4.0 0.2 • A.Al2O3≥30%• R.SiO2≤7%

JurutiRN101,RN102RN103,RN104,RN107,#34

AlcoaWorldAluminaBrasilLtda.(AWABrasil)(100%)

21004

41.3

51.8

47.2

3.3

6.1

• A.Al2O3≥35%• R.SiO2≤10%• WashRecovery:≥30%• Overburden/Ore(m/m)=10/1

Equity Interests: Brazil

Trombetas

MineraçãoRiodoNorteS.A.(MRN)(18.2%)

20464 0.5

3.4

48.2

5.6

2.1

• A.Al2O3≥46%• R.SiO2≤7%• WashRecovery:≥30%

Guinea

Boké

CompagniedesBauxitesdeGuinée(CBG)(22.95%)

2038

8.6

82.4

Tal2O347.2

TsiO22.0

3.6

• A.Al2O3≥44%• R.SiO2≤10%• Minimummineablethickness2m• SmallestMiningUnitsize(SMU)50mx50m

SaudiArabia

AlBa’itha

Ma’adenBauxite&AluminaCompany(MBAC)(25.1%)

2037

30.8

15.2

TAA48.2

TsiO29.3

1.2

• A.Al2O3≥40%• Miningdilutionmodeledasaskinof6cmaboveand8.5cmbelow• Miningrecoveryappliedasaskinlossof14cmoneachsideofthemineralisation• Mineralisationlessthan1mthickexcluded

1 ThistableshowsonlytheAWACand/orAlcoashare(proportion)ofreserveandannualproductiontonnage.

2 “Probablereserves”aretheportionofabauxitereservewherethephysicalandchemicalcharacteristicsandlimitsareknownwithsufficientconfidenceforminingandtowhichvariousminingmodifyingfactorshavebeenapplied.“Provenreserves”aretheportionofabauxitereservewherethephysicalandchemicalcharacteristicsandlimitsareknownwithhighconfidenceandtowhichvariousminingmodifyingfactorshavebeenapplied.

3 AlcoaAlumínioisultimatelyowned100%byAlcoa(notAWAC).

4 Brazilianminerallegislationdoesnotlimitthedurationofminingconcessions;rather,theconcessionremainsinforceuntilthedepositisexhausted.Theseconcessionsmaybeextendedlaterorexpireearlierthanestimated,basedontherateatwhichthesedepositsareexhaustedandonobtaininganyadditionalgovernmentalapproval,asnecessary.

Qualifyingstatementsrelatingtothetableabove:

Australia—DarlingRangeMines:HuntlyandWillowdalearethetwoactiveAWACminesintheDarlingRangeofWesternAustraliathatsupplybauxitetothreelocalAWACaluminarefineries.TheyoperatewithinML1SA,themineralleaseissuedbytheStateofWesternAustraliatoAlcoa’smajority-ownedsubsidiary,AofA.TheML1SAleaseencompassesagrossareaof712,881hectares(includingprivatelandholdings,stateforests,nationalparksandconservationareas)intheDarlingRangeandextendsfromeastofPerthtoeastofBunbury(ML1SAArea).TheML1SAleaseprovidesAofAwithvariousrights,includingcertainexclusivityrightstoexploreforandminebauxite,rightstodenythirdpartyminingtenementsinlimitedcirc*mstances,rightstominingleasesforothermineralsintheML1SAArea,andtherighttopreventcertaingovernmentalactionsfrominterferingwithorprejudiciallyaffectingtherightsofAofA.TheML1SAleasetermextendsto2024andcanberenewedforanadditional21-yearperiodto2045.Theabove-declaredreservesarecurrentasofDecember31,2020.TheamountofreservesreflectsthetotalAWACshare.Additionalresourcesareroutinelyupgradedbyadditionalexplorationanddevelopmentdrillingtoreservestatus.

Brazil—PoçosdeCaldas:Theabove-declaredreservesarecurrentasofDecember31,2020.TonnageistotalAlcoashare.Additionalresourcesarebeingupgradedtoreservesasneeded.

Brazil—JurutiRN101,RN102,RN103,RN104,RN107,#34:Theabove-declaredreservesarecurrentasofDecember31,2020.AllreservesareontheCapirangaPlateauinmineralclaimareasRN101,RN102,RN103,RN104,RN107,#34,within

whichAlcoahasoperatinglicensesissuedbythestate.DeclaredreservesaretotalAWACshare.Declaredreservetonnagesandtheannualproductiontonnagearewashedandunwashedproducttonnages.TheJurutimine’soperatinglicensesareperiodicallyrenewed.

Brazil—Trombetas-MRN:Theabove-declaredreservesareasofDecember31,2020.DeclaredandannualproductiontonnagesreflectthetotalforAlcoaAlumínioandAWACshares(18.2%).Declaredtonnagesarewashedproducttonnages.

Guinea—Boké-CBG:Theabove-declaredreservesarebasedonexportqualitybauxitereservesandarecurrentasofDecember31,2020.DeclaredtonnagesreflectonlytheAWACshareofCBG’sreserves.AnnualproductiontonnageisreportedbasedonAWAC’s22.95%share.Declaredreservesqualityisreportedbasedontotalaluminacontent(Tal2O3)andtotalsilica(TsiO2)becauseCBGexportbauxiteissoldonthisbasis.Additionalresourcesarebeingroutinelydrilledandmodeledtoupgradetoreservesasneeded.

SaudiArabia—AlBa’itha:TheAlBa’ithaMinebeganproductionduring2014andproductionwasincreasedin2016.DeclaredreservesareasofDecember31,2020.ThedeclaredreservesarelocatedintheSouthZoneoftheAzZabirahBauxiteDeposit.ThereservetonnageinthisdeclarationisAWACshareonly(25.1%).

ThefollowingtableprovidesadditionalinformationregardingtheCompany’sbauxitemines,allofwhichareopen-cutmines.Excavationisdoneatthesurfaceofopen-cutminestoextractmineralore(suchasbauxite).Open-cutminesarenotundergroundandtheskyisviewablefromtheminefloor:

Mine & Location Means ofAccess Operator

Title,Lease or Options History

Type ofMine Mineralization Style Power Source

Facilities,Use & Condition

Australia—DarlingRange;HuntlyandWillowdale.

Minelocationsareaccessedbyroad.Oreistransportedtorefineriesbylongdistanceconveyorandrail.

Alcoa

MiningleasefromtheWesternAustraliaGovernment.ML1SA.Expiresin2024,withoptiontorenew.

Miningbeganin1963.

Open-cutmines;BauxiteisderivedfromtheweatheringofArcheangranitesandgneissesandPrecambriandolerite.

Electricalenergyfromnaturalgasissuppliedbytherefinery.

Infrastructureincludesbuildingsforadministrationandservices;workshops;powerdistribution;watersupply;crushers;longdistanceconveyors.Minesandfacilitiesareoperating.WeexpecttocompletetheprocessofmovingtheWillowdaleminingoperationsin2021.

Brazil—PoçosdeCaldas.ClosesttownisPoçosdeCaldas,MG,Brazil.

Minelocationsareaccessedbyroad.Oretransporttotherefineryisbyroad.

Alcoa

MininglicensesfromtheGovernmentofBrazilandMinasGerais.Companyclaimsandthird-partyleases.Operationlicenseexpiresin2022butcanbeextendedsubjecttomeetinganyapplicableconditions.

Miningbeganin1965.

Open-cutmines;Bauxitederivedfromtheweatheringofnephelinesyeniteandphonolite.

Commercialgridpower.

Miningofficesandservicesarelocatedattherefinery.Numeroussmalldepositsareminedbycontractminersandtheoreistruckedtoeithertherefinerystockpileorintermediatestockpilearea.Minesandfacilitiesareoperating.MineproductionhasbeenreducedtoalignwiththereducedproductionofthePoçosrefinerywhichisnowproducingspecialtyalumina.

Brazil—Juruti.ClosesttownisJurutilocatedontheAmazonRiver.

Themine’sportatJurutiislocatedontheAmazonRiverandaccessedbyship.Oreistransportedfromtheminesitetotheportbycompanyownedrail.

Alcoa

MininglicensesfromtheGovernmentofBrazilandPará.Miningrightsdonothavealegalexpirationdate.Seefootnote4tothetableabove.Operatinglicensesforthemine,washingplantandexplorationareintheprocessofbeingrenewed.Operatinglicensefortheportremainsvaliduntilthegovernmentagencyformalizestherenewal.

TheJurutidepositwassystematicallyevaluatedbyReynoldsMetalsCompany(Reynolds)beginningin1974.ParentComergedReynoldsintotheCompanyin2000.ParentCothenexecutedaduediligenceprogramandexpandedtheexplorationarea.Miningbeganin2009.

Open-cutmines;BauxitederivedfromweatheringduringtheTertiaryofCretaceousfinetomediumgrainedfeldspathicsandstones.ThedepositsarecoveredbytheBelterraclays.

Electricalenergyfromfueloilisgeneratedattheminesite.Commercialgridpowerattheport.

Attheminesite:Fixedplantfacilitiesforcrushingandwashingtheore;mineservicesofficesandworkshops;powergeneration;watersupply;stockpiles;railsidings.Attheport:Mineandrailadministrativeofficesandservices;portcontrolfacilitieswithstockpilesandshiploader.Mineandportfacilitiesareoperating.WeexpecttocompletetheprocessofmovingtheJurutiminingoperationsin2022.

Mine & Location Means ofAccess Operator

Title,Lease or Options History

Type ofMine Mineralization Style Power Source

Facilities,Use & Condition

Brazil—MRN.ClosesttownisTrombetasintheStateofPará,Brazil.

Themineandportareasareconnectedbysealedroadandcompanyownedrail.WashedoreistransportedtoPortoTrombetasbyrail.Trombetasisaccessedbyriverandbyairattheairport.

MRN

MiningrightsandlicensesfromtheGovernmentofBrazil.Concessionrightsexpirein2046.

Miningbeganin1979.Majorexpansionin2003.

Open-cutmines.BauxitederivedfromweatheringduringtheTertiaryofCretaceousfinetomediumgrainedfeldspathicsandstones.ThedepositsarecoveredbytheBelterraclays.

MRNgeneratesitsownelectricityfromfueloil.

Oreminedfromseveralplateausiscrushedandtransportedtothewashingplantbylong-distanceconveyors.Thewashingplantislocatedintheminingzone.Washedoreistransportedtotheportareabycompany-ownedandoperatedrail.AtPortoTrombetastheoreisloadedontocustomershipsberthedintheTrombetasRiver.Someoreisdriedandthedryingfacilitiesarelocatedintheportarea.Mineplanningandservicesandminingequipmentworkshopsarelocatedintheminezone.Themainadministrative,railandportcontrolofficesandvariousworkshopsarelocatedintheportarea.MRN’smainhousingfacilitiesarelocatedneartheport.Themines,portandallfacilitiesareoperating.

Guinea—CBG.ClosesttowntothemineisSangaredi.ClosesttowntotheportisKamsar.TheCBGLeaseislocatedwithintheBoké,TelimeleandGaoualadministrativeregions.

Themineandportareasareconnectedbysealedroadandcompany-operatedrail.OreistransportedtotheportatKamsarbyrail.Thereareairstripsnearboththemineandport.Thesearenotoperatedbythecompany.

CBG

CBGLeaseexpiresin2038.Theleaseisrenewablein25-yearincrements.CBG’srightsarespecifiedwithintheBasicAgreementandAmendment1totheBasicAgreementwiththeGovernmentofGuinea.

Constructionbeganin1969.Firstexportoreshipmentwasin1973.

Open-cutmines:ThebauxitedepositswithintheCBGleaseareoftwogeneraltypes.TYPE1:In-situlaterizationofOrdovicianandDevonianplateausedimentslocallyintrudedbydoleritedikesandsills.TYPE2:SangareditypedepositsarederivedfromclasticdepositionofmaterialerodedfromtheTYPE1lateritedepositsandpossiblysomeoftheprolithsfromtheTYPE1plateausdeposits.

ThecompanygeneratesitsownelectricityfromfueloilatbothKamsarandSangaredi.

Mineoffices,workshops,powergeneration,andwatersupplyforthemineandcompanyminecityarelocatedatSangaredi.Themainadministrativeoffices,portcontrol,railroadcontrol,workshops,powergenerationandwatersupplyarelocatedinKamsar.Oreiscrushed,driedandexportedfromKamsar.CBGhascompanycitieswithinbothKamsarandSangaredi.Themines,railroad,driers,portandotherfacilitiesareoperating.

SaudiArabia—AlBa’ithaMine.Qibahistheclosestregionalcentertothemine,locatedintheQassimprovince.

Themineandrefineryareconnectedbyroadandrail.OreistransportedtotherefineryatRasAlKhairbyrailandtruck.

Ma’adenBauxite&AluminaCompany(MBAC)

Thecurrentminingleasewillexpirein2037.

Theinitialdiscoveryanddelineationofbauxiteresourceswascarriedoutbetween1979and1984.ThesouthernzoneoftheAzZabirahdepositwasgrantedtoMa’adenin1999.Mineconstructionwascompletedinthesecondquarterof2015,andtheminingoperationscontinuedatplannedlevels.

Open-cutmine;BauxiteoccursasapaleolateriteprofiledevelopedatanangularunconformitybetweenunderlyinglateTriassictoearlyCretaceoussediments(parentrocksequenceBiyadhFormation)andtheoverlyinglateCretaceousWasiaFormation(overburdensequence).

Thecompanygenerateselectricityattheminesitefromfueloil.

Themineincludesfixedplantsforcrushingandtrainloading;workshopsandancillaryservices;powerplant;andwatersupply.Thereisacompanyvillagewithsupportingfacilities.Miningoperationscommencedin2014.

Alumina

ThissegmentconsistsoftheCompany’sworldwiderefiningsystem,whichprocessesbauxiteintoalumina.Alcoa’saluminasalesaremadetocustomersallovertheworldandaretypicallypricedbyreferencetopublishedspotmarketprices.TheCompany’slargestcustomerforsmeltergradealuminaisitsownaluminumsmelters,whichin2020accountedforapproximately31%ofitstotalaluminashipments.Asmallportionofthealuminaissoldtothird-partycustomerswhoprocessitintoindustrialchemicalproducts.ThissegmentalsoincludesAWAC’s25.1%shareofMBAC.

TheCompanyprimarilysellsaluminathroughfixedpricespotsalesandcontractscontainingtwopricingcomponents:(1)theAPIpricebasis,and(2)anegotiatedadjustmentbasisthattakesintoaccountvariousfactors,includingfreight,quality,customerlocation,andmarketconditions.In2020,approximately95%oftheCompany’ssmeltergradealuminashipmentstothirdpartiesweresoldonafixedpricespotbasisoradjustedAPIpricebasis.

Alcoa’saluminarefiningfacilitiesanditsworldwidealuminacapacitystatedinmetrictonsperyear(mtpy)areshowninthefollowingtable:

Country Facility

NameplateCapacity1

(000 mtpy)

AlcoaCorporationConsolidated

Capacity1

(000 mtpy) Australia(AofA) Kwinana 2,190 2,190

Pinjarra 4,234 4,234 Wagerup 2,555 2,555Brazil PoçosdeCaldas 390 390

SãoLuís(Alumar) 3,500 1,890Spain SanCiprián 1,500 1,500TOTAL 14,369 12,759

Equity Interests:

Country Facility

NameplateCapacity1

(000 mtpy)

AlcoaCorporationConsolidated

Capacity1

(000 mtpy) SaudiArabia RasAlKhair(MBAC) 1,800 452

1 NameplateCapacityisanestimatebasedondesigncapacityandnormaloperatingefficienciesanddoesnotnecessarilyrepresentmaximumpossible

production.AlcoaCorporationConsolidatedCapacityrepresentsourshareofproductionfromthesefacilities.Forfacilitieswholly-ownedbyAWACentities,Alcoatakes100%oftheproduction.

AsofDecember31,2020,Alcoahadapproximately214,000mtpyofidlecapacityrelativetototalAlcoaconsolidatedcapacityof12,759,000mtpy.The214,000mtpyofidlecapacityisatthePoçosdeCaldasfacilityasaresultofthefullcurtailmentofthePoçosdeCaldassmelter.

InOctober2019,theCompanyannouncedafive-yearreviewofourproductionassetsthatincludesarangeofpotentialoutcomesforthesefacilities,includingsignificantlyimprovedcompetitivepositioning,curtailment,closure,ordivestiture.Thereviewincludes4millionmetrictonsofglobalrefiningcapacity,ofwhich2,305,000mtpyofcapacityhasbeenpermanentlyclosedsincetheannouncedreview(PointComfortrefinery,Texas).SeePartIIItem8ofthisForm10-KinNoteDtotheConsolidatedFinancialStatementsforadditionalinformation.

Aluminum

Thissegmentcurrentlyconsistsof(i)theCompany’sworldwidesmeltingandcasthousesystem,(ii)aportfolioofenergyassetsinBrazil,Canada,andtheUnitedStates,and(iii)arollingmilllocatedatWarrickOperations(WarrickRollingMill),anintegratedaluminummanufacturingsitenearEvansville,Indiana(WarrickOperations)intheUnitedStates.Thesmeltingoperationsproducemoltenprimaryaluminum,whichisthenformedbythecastingoperationsintoeithercommonalloyingot(e.g.,t-bar,sow,standardingot)orintovalue-addingotproducts(e.g.,foundry,billet,rod,andslab).TheenergyassetssupplypowertoexternalcustomersinBrazil,and,toalesserextent,intheUnitedStates,andinternalcustomerswithintheAluminumsegment(BaieComeau(Canada)smelterandWarrick(Indiana)smelterandrollingmill)andtheAluminasegment(Brazilianrefineries).TheCompanyhasenteredintoanagreementtoselltheWarrickRollingMill,whichproducesaluminumsheetprimarilyfortheproductionofaluminumcans,toKaiserAluminumCorporation(Kaiser).Thesaleis

expectedtoclosebytheendofthefirstquarterof2021,subjecttocustomaryclosingconditions.ThissegmentalsoincludesAlcoa’s25.1%shareofMAC,thesmeltingjointventurecompanyinSaudiArabia.

Smelting and Casting Operations

Contractsforprimaryaluminumvarywidelyinduration,frommulti-yearsupplycontractstospotpurchases.Pricingforprimaryaluminumproductsistypicallycomprisedofthreecomponents:(i)thepublishedLMEaluminumpriceforcommoditygradeP1020aluminum,(ii)thepublishedregionalpremiumapplicabletothedeliverylocaleand(iii)anegotiatedproductpremiumthataccountsforfactorssuchasshapeandalloy.

Alcoa’sprimaryaluminumfacilitiesanditsglobalsmeltingcapacitystatedinmetrictonsperyear(mtpy)areshowninthefollowingtable:

Country Facility

NameplateCapacity1

(000 mtpy)

AlcoaCorporationConsolidated

Capacity1

(000 mtpy) Australia Portland 358 197Brazil PoçosdeCaldas2 N/A N/A SãoLuís(Alumar) 447 268Canada BaieComeau,Québec 280 280 Bécancour,Québec 413 310 Deschambault,Québec 260 260Iceland Fjarðaál 344 344Norway Lista 94 94 Mosjøen 188 188Spain SanCiprián 228 228UnitedStates MassenaWest,NY 130 130 Ferndale,WA(Intalco) 279 279 Wenatchee,WA 146 146 Evansville,IN(Warrick) 269 269TOTAL 3,436 2,993

Equity Interests:

Country Facility

NameplateCapacity1

(000 mtpy)

AlcoaCorporationConsolidated

Capacity1

(000 mtpy) SaudiArabia RasAlKhair(MAC) 740 186

1 NameplateCapacityisanestimatebasedondesigncapacityandnormaloperatingefficienciesanddoesnotnecessarilyrepresentmaximumpossible

production.AlcoaCorporation’sconsolidatedcapacityisitsshareofNameplateCapacitybasedonitsownershipinterestintherespectivesmelter.2 ThePoçosdeCaldasfacilityisacasthouseanddoesnotincludeasmelter.

AsofDecember31,2020,theCompanyhadapproximately831,000mtpyofidlesmeltingcapacityrelativetototalAlcoaconsolidatedcapacityof2,993,000mtpy.Theidlecapacityincludes230,000mtpyattheIntalcosmelterinFerndale,Washingtonwhichwascurtailedin2020and49,000mtpyofearlier-curtailedcapacity.TheAlumarandWenatcheesmeltershavebeenfullycurtailedsince2015,andthePortlandsmelterhas30,000mtpyofidlecapacity.ThesmelteratWarrickOperations,whichisdedicatedtosupplyingtheWarrickRollingMill,has108,000mtpyofidlecapacity.

TheCompany’sannouncedfive-yearreviewofourproductionassetsincludes1.5millionmetrictonsofsmeltingcapacity.ThecurtailmentoftheIntalcosmelterreducedthetargetby279,000metrictons.

OnOctober8,2020,theCompanymadethedecisiontocurtailthe228,000metrictonsofuncompetitiveannualsmeltingcapacityattheSanCipriánsmelterinSpain.Thedecisionfollowedafour-monthconsultationprocesswiththeSpanishWorksCouncilandunsuccessfulnegotiationsduringapotentialsaleprocess.OnOctober4,2020,thelaborforceatboththerefineryandthealuminumfacilitiesatSanCipriáninitiatedastrike.FollowingAlcoa’sannouncementtocurtailtheSanCipriánsmelter,theworkers’representativeschallengedthecollectivedismissalprocessinalegalproceedingbeforethe

HighCourtofJusticeofGalicia,whichruledinfavoroftheworkersonDecember17,2020.Asaresult,theCompanysuspendeditsplanstocurtailtheSanCipriánsmelter.OnJanuary22,2021,theCompanyreachedagreementwiththeworkers’representativestosuspendthestrike.Aspartoftheagreement,theCompanyagreedtoconductasaleprocesstosellthesmeltertoaSpanishgovernmentownedentity.

SeePartIIItem8ofthisForm10-KinNoteDtotheConsolidatedFinancialStatementsforadditionalinformation.

Rolling Operations

TheAluminumsegment’srolledproductsbusinessconsistssolelyoftheCompany’srollingmilloperationsinWarrick,Indiana,whichproducesaluminumsheet.Alcoa’srolledproductsbusinesshasthecapabilityofparticipatinginseveralmarketsegments,includingbeveragecansheet,foodcansheet,lithographicsheet,andindustrialproducts.ThetermRigidContainerSheet(RCS)iscommonlyusedforbothbeverageandfoodcansheet.RCSincludesthematerialusedtoproducethebodyofbeveragecontainers(bodystock),thelidofbeveragecontainers(endstockandtabstock),thematerialtoproducefoodcanbodyandlids(foodstock),andthematerialtoproducealuminumbottles(bottlestock)andbottleclosures(closuresheet).

In2020,ourWarrickRollingMillproducedandsold305,900metrictonsofRCSandindustrialproductstocustomersinNorthAmerica.ThemajorityofitssaleswerecoatedRCSproducts(foodstock,beverageendandtabstock).Cansheetdemandisafunctionofconsumerdemandforbeveragesandfoodinaluminumpackaging,andseasonalincreasesincansheetsalesaregenerallyexpectedinthesecondandthirdquartersoftheyear.

OnNovember30,2020,theCompanyenteredintoanagreementtoselltheWarrickRollingMilllocatedatWarrickOperations,toKaiserfortotalconsiderationofapproximately$670,whichincludes$587incashandtheassumptionof$83inotherpostretirementbenefitliabilities.Thesaleisexpectedtoclosebytheendofthefirstquarterof2021,subjecttocustomaryclosingconditions.SeePartIIItem8ofthisForm10-KinNoteCtotheConsolidatedFinancialStatementsforadditionalinformation.

Energy Facilities and Sources

Energycomprisesapproximately21%oftheCompany’stotalaluminarefiningproductioncosts.Electricpowercomprisesapproximately26%oftheCompany’sprimaryaluminumproductioncosts.

Electricitymarketsareregionalandarelimitedinsizebyphysicalandregulatoryconstraints,includingthephysicalinabilitytotransportelectricityefficientlyoverlongdistances,thedesignoftheelectricgrid,includinginterconnections,andtheregulatorystructureimposedbyvariousfederalandstateentities.

Electricitycontractsmaybeshort-term(real-timeordayahead)oryearsinduration,andcontractscanbeexecutedforimmediatedeliveryoryearsinadvance.Pricingmaybefixed,indexedtoanunderlyingfuelsourceorotherindexsuchasLME,cost-basedorbasedonregionalmarketpricing.In2020,Alcoageneratedapproximately10%ofthepowerusedatit*smeltersworldwideandgenerallypurchasedtheremainderunderlong-termarrangements.

Thefollowingtablesetsforththeelectricitygenerationcapacityand2020generationoffacilitiesinwhichAlcoaCorporationhasanownershipinterest.SeealsotheJointVenturessectionabove.

Country Facility

Alcoa CorporationConsolidated

Capacity (MW) 2020 Generation

(MWh) Brazil BarraGrande 152 816,639 Estreito 157 1,070,880 Machadinho 119 1,348,931 SerradoFacão 60 266,607Canada Manicouagan 133 1,163,891UnitedStates Warrick 657 3,760,925TOTAL 1,278 8,427,873

Thefiguresinthistablearepresentedinmegawatts(MW)andmegawatthours(MWh),respectively.

EachfacilitylistedabovegenerateshydroelectricpowerexcepttheWarrickfacility,whichgeneratessubstantiallyallofthepowerusedbytheWarricksmeltingandrollingfacilitiesfromtheco-locatedWarrickpowerplantusingcoalpurchasedfromthirdpartiesatnearbycoalreserves.During2020,approximately31%ofthecapacityfromtheWarrickpowerplantwassoldintothemarketunderitscurrentoperatingpermits.AlcoaPowerGeneratingInc.,asubsidiaryoftheCompany,alsoowns

certainFederalEnergyRegulatoryCommission(FERC)-regulatedtransmissionassetsinIndiana,Tennessee,NewYork,andWashington.

TheconsolidatedcapacityoftheBrazilianenergyfacilitiesshownaboveinmegawatts(MW)istheassuredenergy,representingapproximately52%ofhydropowerplantnominalcapacity.SinceMay2015(aftercurtailmentofthePoçosdeCaldasandSãoLuíssmeltersinBrazil),theexcessgenerationcapacityfromtheBrazilianhydroelectricfacilitieshasbeensoldintothemarket.

ManicouaganPowerLimitedPartnership(Manicouagan)isajointventurebetweenaffiliatesofAlcoaCorporationandHydro-Québec.Manicouaganownsandoperatesthe335megawattMcCormickhydroelectricproject,whichislocatedontheManicouaganRiverintheProvinceofQuébec.Belowisanoverviewofourexternalenergyforoursmeltersandrefineries.Region External Energy Source Electricity Natural Gas

NorthAmerica

Québec, CanadaThethreesmeltersinQuébecpurchasealloramajorityoftheirelectricityundercontractswithHydro-QuébecthatexpireonDecember31,2029.ThesmelterlocatedinBaieComeaualsopurchasesapproximatelyone-quarterofitspowerneedsfroma40%ownedhydroelectricgeneratingcompany,ManicouaganPowerLimitedPartnership.Wenatchee, WashingtonThissmelterisservedbyacontractwithChelanCountyPublicUtilityDistrictNo.1(ChelanPUD)underwhichAlcoareceives26%ofthehydropoweroutputofChelanPUD’sRockyReachandRockIslanddams.TheWenatcheesmelterhasbeenfullycurtailedsince2015.Intalco, WashingtonPriortothecurtailmentoftheIntalcosmelter,allpowerrequirementsofthesmelterwerepurchasedfromthemarket.Massena, New York (Massena West)TheMassenaWestsmelterinNewYorkreceivespowerfromtheNewYorkPowerAuthority(NYPA)pursuanttoacontractbetweenAlcoaandNYPAthatwillexpireinMarch2026.

Alcoagenerallyprocuresnaturalgasonacompetitivebidbasisfromavarietyofsources,includingproducersinthegasproductionareasandindependentgasmarketers.ContractpricingforgasistypicallybasedonapublishedindustryindexsuchastheNewYorkMercantileExchange(NYMEX)price.

Australia

PortlandThissmelterpurchasespowerfromtheNationalElectricityMarket(NEM)variablespotmarket.ThesmelterhasfixedforfloatingswapcontractswithAGLEnergyLtd.inordertomanageexposuretothevariableenergyratesfromtheNEM.TheswapcontractswillexpireonJuly31,2021.

Western AustraliaAofAusesgastoco-generatesteamandelectricityforitsaluminarefiningprocessesattheKwinana,PinjarraandWageruprefineries.In2015,AofAsecuredasignificantportionofgassuppliesto2032,coveringmorethan95%oftherefineries’gasrequirementsthrough2023anddecreasingpercentagesthereafter.In2020,AofAcontractedforadditionalgassuppliesstartingin2024.Onacombinedbasis,thesegassupplyarrangementsareexpectedtocovermorethan80%oftherefineries’gasrequirementsthrough2027.

Europe

San Ciprián, SpainAlcoa’ssmelteratSanCiprián,Spain,purchaseselectricityunderabilateralspotpowercontractthatexpiresJune30,2021.AlcoaparticipatesinademandresponseprograminSpain,agreeingtoreduceusageofelectricityforaspecificperiodoftime,inreturnforcompensation,whichallowstheutilityorgridoperatortodivertelectricityduringtimesofpeakdemand.Theserightsareallocatedthroughanauctionprocess,thelastoccurringinDecember2019,whereAlcoasecured325MWofinterruptibilityrightsfortheperiodofJanuarytoJune2020;thisprogramwasnotineffectforthesecondhalfof2020.Lista and Mosjøen, NorwayBeginningin2017,Alcoaenteredintoseverallong-termpowerpurchaseagreements,whichsecuredapproximately50%ofthenecessarypowerfortheNorwegiansmeltersfortheperiodof2020to2035.Theremaining50%iscurrentlypurchasedundershort-termcontracts.FinancialcompensationoftheindirectcarbonemissionscostspassedthroughintheelectricitybillisreceivedinaccordancewithEUCommissionGuidelinesandtheNorwegiancompensationregime.IcelandLandsvirkjun,theIcelandicnationalpowercompany,suppliescompetitivelypricedelectricitytoAlcoa’sFjarðaálsmelterineasternIcelandundera40-yearpowercontract,whichwillexpirein2047withpricerenegotiationeffectivefrom2027.

SpainIn2020,naturalgaswassuppliedtotheSanCiprián,Spain,aluminarefinerypursuanttothreesupplycontractswithBP,EndesaandNaturgy;theBPandEndesacontractsexpiredduring2020.In2021,therefinery’snaturalgasrequirementswillbesuppliedpursuanttotwosupplycontracts,withNaturgyexpiringinJune2021andDecember2021,respectively,andonesupplycontractwithUFG(ENIgroup)expiringinDecember2021.

Sources and Availability of Raw Materials

Generally,materialsarepurchasedfromthird-partysuppliersundercompetitivelypricedsupplycontractsorbiddingarrangements.TheCompanybelievesthattherawmaterialsnecessarytoitsbusinessareandwillcontinuetobeavailable.

Foreachmetricton(mt)ofaluminaproduced,Alcoaconsumesthefollowingamountsoftheidentifiedrawmaterialinputs(approximaterangeacrossrelevantfacilities):

Raw Material Units Consumption per mt of AluminaBauxite mt 2.2–3.6Causticsoda kg 60–100Electricity kWh 200to260totalconsumed(0to230imported)Fueloilandnaturalgas GJ 6.2–12.2Lime(CaO) kg 6–60

Foreachmetrictonofaluminumproduced,Alcoaconsumesthefollowingamountsoftheidentifiedrawmaterialinputs(approximaterangeacrossrelevantfacilities):

Raw Material Units Consumption per mt of Primary AluminumAlumina mt 1.92±0.02Aluminumfluoride kg 17.1±5.0Calcinedpetroleumco*ke mt 0.37±0.05Cathodeblocks mt 0.005±0.002Electricity kWh 13,100–16,500Liquidpitch mt 0.10±0.03Naturalgas mcf 3.0±1.0

Certainaluminumproducedincludesalloyingmaterials.Becauseofthenumberofdifferenttypesofelementsthatcanbeusedtoproducevariousalloys,providingarangeofsuchelementswouldnotbemeaningful.Withtheexceptionofaverysmallnumberofinternallyusedproducts,AlcoaproducesitsaluminumalloysinadherencetoanAluminumAssociation(ofwhichAlcoaisanactivemember)standard,whichusesaspecificdesignationsystemtoidentifyalloytypes.Ingeneral,eachalloytypehasamajoralloyingelementotherthanaluminumbutwillalsoincludelesseramountsofotherconstituents.Competition

Alcoaissubjecttohighlycompetitiveconditionsinallaspectsofthealuminumsupplychaininwhichitcompetes.Ourbusinesssegmentsoperateincloseproximitytoourbroad,worldwidecustomerbase,enablingustomeetcustomerdemandinkeymarketsinNorthAmerica,SouthAmerica,Europe,theMiddleEast,Australia,andChina.Alcoa’scompetitivepositiondepends,inpart,ontheCompany’saccesstoaneconomicalpowersupplytosustainitsoperationsinvariouscountries,inparticularforitsaluminumsmeltingoperations.

WecompetewithavarietyofbothU.S.andnon-U.S.companiesinallmajormarketsacrossthealuminumsupplychain.Competitorsincludebauxiteminerswhosupplytothethird-partybauxitemarket,activealuminasuppliers,refinersandproducers,commoditytraders,aluminumproducers,RCSproducers,andproducersofalternativematerialssuchassteel,titanium,copper,carbonfiber,composites,plasticandglass.

Wecontinuetoenhancethesustainabilityofourproductsandarewellpositionedtoaddvalueforourcustomersbyofferingafamilyofsustainableproducts.Byhavinganintegratedaluminumvaluechain,weareabletodeliverourSustanaTMproductline,whichincludes:EcoSource™,theworld’sfirstandonlylow-carbonaluminabrand;Ecolum™,aprimaryaluminumwithnomorethan4.0mtofCO2epertonofaluminumproduced,includingindirectanddirectemissions,fromtheentireproductionprocess;andEcoDura™,analuminumproductproducedwithaminimumof50%recycledcontent,usingsignificantlylessenergythanwhatittakestoproduceonlyvirginaluminum.Theseproductspositionustoofferasustainableoptiontoourcustomersinterestedinimprovingtheirenvironmentalfootprint.

Competitiveadvantagesspecifictoeachbusinesssegmentaredetailedbelow.Bauxite:

Weareamongtheworld’slargestbauxiteminers,withbestpracticesinefficientminingoperationsandsustainability.Themajorityofbauxiteminedgloballyisconvertedtoaluminafortheproductionofaluminum.Alcoa’sbauxiteisusedbothtosupplyinternalconsumptioninouraluminarefineriesaswellasinsalesthroughourthird-partybauxitebusinesstomeetgrowingdemand.Thethird-partymarketformetallurgicalgradebauxiteisgrowingquicklyasglobaldemandforbauxiteincreases—particularlyinChina.

Ourprincipalcompetitorsinthethird-partybauxitemarketincludeRioTintoandmultiplesuppliersfromGuinea,Australia,Indonesia,andBrazil,amongothercountries.Wecompetelargelybasedonbauxitequality,priceandproximitytocustomers,aswellaslong-termbauxiteresourcesinstrategicbauxiteminelocations,includingAustralia,Brazil,andGuinea,whichishometotheworld’slargestreservesofhigh-qualitymetallurgicalgradebauxite.Ourhigh-qualitybauxiteisminedresponsiblyandreliably,therebyreducingsupplychainriskforanydownstreamuser.

Alumina:

Wearetheworld’slargestaluminaproduceroutsideofChinaandoperatecompetitive,efficientassetsacrossourrefining,aluminumsmelting,andcastingportfolios.Thealuminamarketisglobalandhighlycompetitive,withmanyactivesuppliers,producers,andcommoditytraders.Ourmaincompetitorsinthethird-partyaluminamarketareAluminumCorporationofChina,South32Limited,HangzhouJinjiangGroup,RioTintoandNorskHydroASA.Inrecentyears,therehasbeensignificantgrowthinaluminarefininginChinaandIndia.Themajorityofourproductissoldintheformofsmeltergradealumina.

Keyfactorsinfluencingcompetitioninthealuminamarketincludecostposition,price,reliabilityofbauxitesupply,qualityandproximitytocustomersandendmarkets.Wehadanaveragecostpositioninthefirstquartileofglobalaluminaproductionin2020,inpartattributabletoourdeeptechnicalexpertiseandsophisticationinrefiningtechnologyandprocessautomation.Ourrefineriesarestrategicallylocatednexttolowcostbauxitemines,andouraluminarefineriesaretunedtomaximizeefficiencywiththebauxitequalitiesfromtheseinternalmines.Inadditiontotheserefiningefficiencies,verticalintegrationaffordsastableandconsistentlong-termsupplyofbauxitetoourrefiningportfolio.

Aluminum:

InourAluminumsegment,competitionisdependentuponthetypeofproductweareselling.

Themarketforprimaryaluminumisglobal,anddemandforaluminumvarieswidelyfromregiontoregion.Wecompetewithcommoditytraders,suchasGlencore,Trafigura,J.AronandGeraldGroup,andaluminumproducerssuchasEmiratesGlobalAluminum,NorskHydro,RioTinto,CenturyAluminum,VedantaAluminumLtd.,andUnitedCompanyRUSALPlc.

Thealuminumindustryishighlycompetitive.Severalofthemostcriticalcompetitivefactorsinourindustryareproductquality,productioncosts(includingsourceandcostofenergy),price,accessandproximitytorawmaterials,customersandendmarkets,timelinessofdelivery,customerservice(includingtechnicalsupport),productinnovation,andbreadthofofferings.Wherealuminumproductscompetewithothermaterials,thediversecharacteristicsofaluminumarealsoasignificantfactor,particularlyitslightweight,strengthandrecyclability.

Thestrengthofourpositionintheprimaryaluminummarketislargelyattributableto:ourintegratedsupplychain;long-termenergyarrangements,whichallowustocontinuallyreduceproductioncosts;theabilityofourcasthousestoprovidecustomerswithadiverseproductportfoliointermsofshapesandalloys;andourdecreasingdemandforfossilfuels,asapproximately78%ofthealuminumsmeltingportfoliooperatedbytheCompanyranonrenewablepowersourcesin2020.TheCompanyintendstocontinuetofocusonoptimizingcapacityutilization.Patents, Trade Secrets and Trademarks

TheCompanybelievesthatit*domesticandinternationalpatent,tradesecretandtrademarkassetsprovideitwithasignificantcompetitiveadvantage.TheCompany’srightsunderitsintellectualproperty,aswellasthetechnologyandproductsmadeandsoldunderthem,areimportanttotheCompanyasawholeand,tovaryingdegrees,importanttoeachbusinesssegment.Alcoa’sbusinessasawholeisnot,however,materiallydependentonanysinglepatent,tradesecretortrademark.Asaresultofproductdevelopmentandtechnologicaladvancement,theCompanycontinuestopursuepatentprotectioninjurisdictionsthroughouttheworld.AsofDecember31,2020,Alcoa’sworldwidepatentportfolioconsistedofapproximately620grantedpatentsand240pendingpatentapplications.TheCompanyalsohasanumberofdomesticandinternationalregisteredtrademarksthathavesignificantrecognitionwithinthemarketsthatareserved,includingthename“Alcoa”andtheAlcoasymbol.

InconnectionwiththeSeparationTransaction,AlcoaCorporationandParentCoenteredintocertainintellectualpropertylicenseagreementsthatprovideforalicenseofcertainpatents,trademarksandknow-howfromParentCoorAlcoaCorporation,asapplicable,totheother,onaperpetual,royalty-free,non-exclusivebasis,subjecttocertainexceptions.Government Regulations and Environmental MattersAlcoa’sglobaloperationssubjectittocompliancewithvarioustypesofgovernmentlawsandregulationswhichoftenprovidediscretiontogovernmentauthoritiesandcouldbeinterpreted,applied,ormodifiedinwaystomaketheCompany’soperationsorcomplianceactivitiesmorecostly.Theselawsandregulationsincludethoserelatingtohealthandsafety(includingthosepromulgatedinresponsetotheongoingCOVID-19pandemic),competition,dataprivacyandsecurity,environmentalcompliance,andtrade,suchastariffsorotherimportorexportrestrictionsthatmayincreasethecostofrawmaterialorcross-bordershipmentsandimpactourabilitytodobusinesswithcertaincountriesorindividuals.Foradiscussionoftherisksassociatedwithcertainapplicablelawsandregulations,seePartIItem1AofthisForm10-K.Foradditionalinformationonthefinancialimpactoftraderegulations,seePartIIItem7ofthisForm10-KinManagement’sDiscussionandAnalysisofFinancialConditionandResultsofOperationsundercaptionBusinessUpdate—Section232Tariffs.

Alcoaissubjecttoextensivefederal,state/provincialandlocalenvironmentallawsandregulations,intheU.S.andabroad,includingthoserelatingtothereleaseordischargeofmaterialsintotheair,waterandsoil,wastemanagement,pollutionpreventionmeasures,thegeneration,storage,handling,use,transportationanddisposalofhazardousmaterials,theexposureofpersonstohazardousmaterials,andgreenhousegasemissions.Weparticipateinenvironmentalassessmentsandcleanupsatapproximately60locations,whichincludecurrentlyownedoroperatedfacilitiesandadjoiningproperties,previouslyownedoroperatedfacilitiesandadjoiningproperties,andwastesites,suchasU.S.Superfund(ComprehensiveEnvironmentalResponse,CompensationandLiabilityAct(CERCLA))sites.In2020,capitalexpendituresforneworexpandedfacilitiesforenvironmentalcontrolwereapproximately$90andapproximately$135isexpectedin2021.SeePartIIItem8ofthisForm10-KinNoteStotheConsolidatedFinancialStatementsundercaptionContingenciesforadditionalinformation.

Human Capital Resources

Ourcorevalues–ActwithIntegrity,OperatewithExcellence,andCareforPeople–guideusasacompany,includingourapproachtohumancapitalmanagement.Weareonamissiontostrengthenourculturewherepeoplearetreatedwithdignityandrespect,andourcorevaluesdriveeverydaydecisions.Webelievethatourpeopleareourgreatestasset.Thesuccessandgrowthofourbusinessdependinlargepartonourabilitytoattract,developandretainadiversepopulationoftalented,qualifiedandhighlyskilledemployeesatalllevelsofourorganization,includingtheindividualswhocompriseourglobalworkforce,ourexecutiveofficersandotherkeypersonnel.

OurCompanypolicies,includingtheCodeofConduct,HarassmentandBullyingFreeWorkplacePolicy,andEHSVision,Values,Mission,andPolicy,supportourmissiontoadvanceourCompanycultureandcorevalues.AlcoamaintainsaHumanRightsPolicythatappliesgloballytotheCompany,itspartnershipsandotherbusinessassociates,andiscommittedtoabidingbyinternationalhumanrightsprinciplesencompassedintheUniversalDeclarationofHumanRights,theInternationalLaborOrganization’sDeclarationonFundamentalPrinciplesandRightsatWork,theUnitedNationsGlobalCompact,andtheUnitedNationsGuidingPrinciplesonBusinessandHumanRights.

Employees

AsofDecember31,2020,Alcoahadapproximately12,900employeesin16countries.Approximately9,200ofourglobalemployeesarecoveredbycollectivebargainingagreementswithcertainunionsandvaryingexpirationdates,includingapproximately1,900employeesintheU.S.,1,700employeesinEurope,1,400employeesinCanada,1,600employeesinSouthAmerica,and2,600employeesinAustralia.Approximately1,700U.S.employeesarecoveredbyacollectivebargainingagreementinplacewiththeUnitedSteelworkers(USW).TherearealsoU.S.collectivebargainingagreementsinplace,withvaryingexpirationdates,withtheInternationalAssociationofMachinistsandAerospaceWorkers(IAM)andtheInternationalBrotherhoodofElectricWorkers(IBEW).

In2020,theCompanycompletedthesaleofitsGumSpringswastetreatmentfacilityinArkansasandthecurtailmentoftheIntalcosmelterinFerndale,Washington,whichreducedthenumberoftotalemployeesbyapproximately700.

Safety and Health

Thesafetyandhealthofouremployees,contractors,temporaryworkers,andvisitorsareourtopprioritiesandkeytoourabilitytoattractandretaintalent.Weaspiretoworksafely,allthetime,everywhere.Westrivetofosteracultureofhazardandriskawareness,theeffectiveunderstandinganduseofoursafesystemsofwork,proactiveincidentreporting,andknowledgesharingtoattainthisgoal.

Oursystemsaredesignedtopreventlossoflifeandseriousinjuryatourlocations.Oursafetyprogramsandsystemsincluderigoroussafetystandardsandcontrols,periodicrisk-basedaudits,aformalandstandardizedprocessforinvestigatingfatalandallseriousinjurypotentialincidents,managementofcriticalrisksandsafetyhazards,andeffortstoeliminatehazardsorimplementcontrolstopreventandmitigaterisks.

Wedocumentanyincidentthathasthepotentialtocauseaseriousinjury,andstrivetomaintainacultureofspeakingup,whereincidentsarereportedandideasareshared.Wehaveoperatingstandardsbasedonhumanperformance,whichteachesemployeeshowtoanticipateandrecognizesituationswhereerrorsarelikelytooccur,inordertoallowustopredict,reduce,manage,andpreventfatalitiesandinjuries.Weintegrateourtemporaryworkers,contractors,andvisitorsintooursafetyprogramsanddatathroughourOneAlcoa:UnitedforSafetyinitiative.

Operationalemployeesarerequiredtotakesafetyandhealthtrainingthatisdeterminedbytheirspecificroles,tasks,areaswheretheywork,jobfunctionsandresponsibilities.In2020,allsalariedemployeeswererequiredtoincludeasafetyobjectiveintheirannualperformanceobjectives.Webelievehavinganindividualsafetyobjectiveempowersouremployeestobemoreinvolvedincreatingoursafetyculture.Tofurthersupportthis,wehaveincludedasafetymetricfocusedonreducingfatalitiesandseriousinjuriesinourannualincentiveprogramforthepastseveralyears.

SeePartIIItem7ofthisForm10-KinManagement’sDiscussionandAnalysisofFinancialConditionandResultsofOperationsundercaptionBusinessUpdate–CoronavirusforadditionalinformationonthehealthandsafetyprotocolsimplementedbytheCompanyfortheprotectionofitsworkersduringtheCOVID-19pandemic.

Inclusion, Diversity, and Equality

Weseektoprovideasafe,respectful,andinclusiveworkplacethatreflectsthediversityofthecommunitiesinwhichweoperateandmakesAlcoaadesiredemployer.Weseektohirelocalcandidateswhenpossibleandcontinuetofocusonthediversityofourcandidatepool.

Weremainfocusedonadvancinginclusion,diversity,andequality.AsofDecember31,2020,womencomprisedapproximately15.6%ofourglobalworkforce.WearecommittedtoachievinggenderbalanceacrossAlcoaandaredefininglong-termactionstoimprovediversityandinclusion.Tosupporttheseefforts,forthepastseveralyears,wehaveincludedametricinourannualincentiveplanfocusedonincreasingthegenderdiversityofourglobalworkforce.

InOctober2020,welaunchedourGlobalInclusion&DiversityCouncilofdiverseleadersacrosstheCompanytosupporttheexecutionofourinclusionanddiversitystrategyaimedatbuildinganinclusiveculturewhereemployeesfeelvalued,empowered,andrespected.Weofferseveralglobalresourcesandinclusiongroupsforouremployees,including:AWARE–Alcoansworkingactivelyforracial-ethnicequality;EAGLE,ourLGBT+Equalityinclusiongroup;andAWN–AlcoaWomen’sNetwork.

Available Information

TheCompany’sinternetwebsiteaddressiswww.alcoa.com.AlcoamakesavailablefreeofchargeonorthroughitswebsiteitsAnnualReportsonForm10-K,QuarterlyReportsonForm10-Q,CurrentReportsonForm8-K,andamendmentstothosereportsassoonasreasonablypracticableaftertheCompanyelectronicallyfilessuchmaterialwith,orfurnishesitto,theSecuritiesandExchangeCommission(theSEC).Thesedocumentscanbeaccessedontheinvestorrelationsportionofourwebsitewww.alcoa.com/investors.ThisinformationcanalsobefoundontheSEC’sinternetwebsite,www.sec.gov.TheinformationontheCompany’swebsiteisincludedasaninactivetextualreferenceonlyandisnotapartof,orincorporatedbyreferencein,thisAnnualReportonForm10-K.

Dissemination of Company Information

AlcoaCorporationintendstomakefutureannouncementsregardingCompanydevelopmentsandfinancialperformancethroughitswebsite,www.alcoa.com,aswellasthroughpressreleases,filingswiththeSEC,conferencecalls,andwebcasts.Information about our Executive Officers

Thenames,ages,positionsandareasofresponsibilityoftheexecutiveofficersoftheCompanyasofthefilingdateofthisForm10-Karelistedbelow.

Roy C. Harvey,47,isPresidentandChiefExecutiveOfficerofAlcoaCorporation.HebecameChiefExecutiveOfficerinNovember2016andassumedtheroleofPresidentinMay2017.Mr.HarveyservedasExecutiveVicePresidentofParentCoandPresidentofParentCo’sGlobalPrimaryProducts(GPP)divisionfromOctober2015toNovember2016.FromJune2014toOctober2015,hewasExecutiveVicePresident,HumanResourcesandEnvironment,Health,SafetyandSustainabilityatParentCo.Priortothattime,Mr.HarveyservedasChiefOperatingOfficer,andwasalsoChiefFinancialOfficer,forGPPatParentCo.Inadditiontotheseroles,Mr.HarveyservedintherolesofDirectorofInvestorRelationsandDirectorofCorporateTreasuryatParentCo.Mr.HarveyjoinedParentCoin2002asabusinessanalystfortheGPPdivisioninKnoxville,Tennessee.

William F. Oplinger,54,hasservedasExecutiveVicePresidentandChiefFinancialOfficerofAlcoaCorporationsinceNovember2016.Mr.OplingerservedasExecutiveVicePresidentandChiefFinancialOfficerofParentCofromApril1,2013toNovember2016.Mr.OplingerjoinedParentCoin2000,andthrough2013heldkeycorporatepositionsinfinancialanalysisandplanningandalsoservedasDirectorofInvestorRelations.Mr.OplingeralsoheldprincipalpositionsintheParentCo’sGPPdivision,includingasController,OperationalExcellenceDirector,ChiefFinancialOfficer,andChiefOperatingOfficer.

Sonya Elam Harden,56,hasservedasExecutiveVicePresidentandChiefExternalAffairsOfficerofAlcoaCorporationsinceAugust2020.Inthisrole,Ms.ElamHardenisresponsibleforglobalgovernmentaffairs,communityrelations,andsustainability,andsheoverseestheAlcoaFoundation.Ms.ElamHardenwastheInterimHeadofExternalAffairsofAlcoaCorporationfromMarch2020throughJuly2020andservedastheVicePresident,GovernmentAffairsfortheWesternHemispherefromNovember2016throughJuly2020.PriortoAlcoaCorporation’sseparationfromParentCo,Ms.ElamHardenheldvariousrolesofincreasingresponsibilityincommunications,marketing,andgovernmentaffairsatParentCo,includingasDirectorofCommunicationsfortheGPPdivisionfromNovember2010throughOctober2016andasDirectorofMarketingfromOctober2009toNovember2010.Ms.ElamHardeninitiallyjoinedParentCoin1989,andrejoinedin2001,afterhavingleftParentCoin1998.

Jeffrey D. Heeter,55,hasservedasExecutiveVicePresidentandGeneralCounselofAlcoaCorporationsinceNovember2016.Inthisrole,Mr.HeeterhasoverallresponsibilityfortheCompany’sgloballegal,compliance,governanceandsecuritymatters.HepreviouslyalsoservedastheSecretaryofAlcoaCorporationfromNovember2016toDecember2019.Mr.HeeterservedasAssistantGeneralCounselandanAssistantOfficerofParentCofrom2014toNovember2016.Mr.HeeterwasGroupCounselfortheGPPdivisionofParentCofrom2010to2014.From2008to2010,Mr.HeeterwasGeneralCounselofAlcoaofAustraliainPerth,Australia.Mr.HeeterjoinedParentCoin1998.

Tammi A. Jones,41,hasservedasExecutiveVicePresidentandChiefHumanResourcesOfficerofAlcoaCorporationsinceApril2020.Ms.Jonesoverseesallaspectsofhumanresourcesmanagement,includingtalentandrecruitment,compensationandbenefits,inclusionanddiversity,traininganddevelopment,andlaborrelations.Ms.JonesservedasVicePresident,CompensationandBenefitsfromJanuary2019throughMarch2020andwastheDirector,OrganizationalEffectivenessfromApril2017toDecember2018.FromApril2015throughMarch2017,Ms.JonesservedasHumanResourcesDirector,Aluminum(GPP),andsheservedasHumanResourcesDirectorforParentCoWheelsandTransportationProductsfromApril2013toApril2015.Ms.JonesjoinedParentCoin2006andheldavarietyofhumanresourcepositionsatParentCo,includingHumanResourcesDirector,EuropeBuilding&ConstructionandHumanResourcesDirector,UKandIrelandinParentCo’sBuildingandConstructionSystemsdivision.

Benjamin D. Kahrs,44,hasservedasExecutiveVicePresidentandChiefInnovationOfficerofAlcoaCorporationsinceNovember2019.Mr.Kahrsoverseestheimplementationofthenewcorporateoperatingmodelandthetransformationofmanufacturingcapabilities,aswellastheCompany’sTechnicalCenterandResearchandDevelopment(R&D),GlobalSharedServices,InformationTechnology,andAutomatedSolutionsfunctions.HewasSeniorVicePresident,ManufacturingExcellenceandR&DfromNovember2018throughOctober2019andwasSeniorVicePresident,TechnologyandCorporateDevelopmentfromNovember2016toNovember2018.Mr.KahrsservedasVicePresident,StrategyandTechnologyoftheGPPdivisionofParentCofromNovember2015toNovember2016andwasLocationManageratthePointComfort,Texas

facilityfromAugust2012toNovember2015.Mr.KahrsinitiallyjoinedParentCoin1999,andrejoinedin2007,afterhavingleftParentCoin2004.

Timothy D. Reyes,54,hasservedasExecutiveVicePresidentandChiefCommercialOfficerofAlcoaCorporationsinceNovember2019.Inthisrole,hecreatescustomer-focusedcommercialstrategiesandisresponsibleforbusinessdevelopmentandstrategy.Mr.ReyeswaspreviouslyPresidentofAlcoaCorporation’sAluminumbusinessunitfromMarch2017toNovember2019.Mr.ReyeswasPresident,AlcoaCastProductsfromNovember2016untilMarch2017,whenthealuminumsmelting,castproductsandrolledproductsbusinesses,alongwiththemajorityoftheenergysegmentassets,werecombinedintoanewAluminumbusinessunit.FromJanuary2015toNovember2016,heservedasPresident,AlcoaCastProductsofParentCo.Priortothistime,Mr.ReyeswasPresidentofAlcoaMaterialsManagement,asubsidiaryofParentCo,fromSeptember2009untilDecember2014,responsibleforthecommercialactivitiesrelatedtoprimarymetals,alumina,andbauxitewithinParentCo’sGPPdivision,andcommoditypriceriskmanagementandglobaltransportationservicesforParentCo.Mr.ReyesjoinedParentCoin1999.

John D. Slaven,59,hasservedasExecutiveVicePresidentandChiefOperationsOfficersinceNovember2019.Mr.SlavenjoinedAlcoaCorporationinFebruary2019asExecutiveVicePresidentandChiefStrategyOfficer.Inhiscurrentrole,Mr.SlavenisresponsibleforthedailyoperationsoftheCompany’sbauxite,alumina,andaluminumassets.From2006until2019,Mr.SlavenwasPartnerandManagingDirectorattheBostonConsultingGroup,aconsultingfirm,wherehemostrecentlyledtheNorthAmericanMetalsandMining,InfrastructureandPublicTransportpractices.Priortothistime,from2002throughearly2006,Mr.SlavenworkedforParentCo,whereheimplementeditsAsiagrowthstrategy,revitalizedtheLatinAmericabusiness,andledParentCo’ssalesandmarketinggrowthinAsiabeforereturningtotheU.S.toleadthecorporatestrategy,financialplanning,andanalysisfunctions.

Item 1A. Risk Factors.

ThereareinherentrisksassociatedwithAlcoa’sbusinessandindustry.Inadditiontothefactorsdiscussedelsewhereinthisreport,thefollowingrisksanduncertaintiescouldhaveamaterialadverseeffectonourbusiness,financialconditionorresultsofoperations,includingcausingAlcoa’sactualresultstodiffermateriallyfromthoseprojectedinanyforward-lookingstatements.Thefollowinglistofsignificantriskfactorsisnotall-inclusiveornecessarilyinorderofimportance.AdditionalrisksanduncertaintiesnotpresentlyknowntoAlcoaorthatAlcoacurrentlydeemsimmaterialalsomaymateriallyadverselyaffectusinfutureperiods.SeePartIIItem7ofthisForm10-KinManagement’sDiscussionandAnalysisofFinancialConditionandResultsofOperationsundercaptionForward-LookingStatements.

Commodity Risks

The aluminum industry and aluminum end-use markets are highly cyclical and are influenced by several factors, including global economic conditions.

Thenatureoftheindustriesinwhichourcustomersoperatecausesdemandforourproductstobecyclical,creatingpotentialuncertaintyregardingfutureprofitability.Thedemandforaluminumissensitiveto,andimpactedby,demandforthefinishedgoodsmanufacturedbyourcustomersinindustries,suchasthecommercialconstruction,transportation,andautomotiveindustries,whichmaychangeasaresultofchangesintheglobaleconomy,foreigncurrencyexchangerates,energypricesorotherfactorsbeyondourcontrol.Thedemandforaluminumisalsohighlycorrelatedtoeconomicgrowth,andwecouldbeadverselyaffectedbylargeorsuddenshiftsintheglobalinventoryofaluminumandtheresultingmarketpriceimpacts.TheChinesemarketisasignificantsourceofglobaldemandfor,andsupplyof,commodities,includingaluminum.IndustryovercapacityorasustainedslowdowninChinesealuminumdemand,orasignificantslowdowninothermarkets,thatisnotoffsetbydecreasesinsupplyofaluminumorincreasedaluminumdemandinemergingeconomies,suchasIndia,Brazil,andseveralSoutheastAsiancountries,couldhaveanadverseeffectontheglobalsupplyanddemandforaluminumandaluminumprices.Inaddition,changesinthealuminummarketcancausechangesinthealuminaandbauxitemarkets,whichcouldalsomateriallyaffectourbusiness,financialcondition,orresultsofoperations.Asaresultofthesefactors,ourprofitabilityissubjecttosignificantfluctuation.

Webelievethelong-termprospectsforaluminumandaluminumproductsarepositive,however,weareunabletopredictthefuturecourseofindustryvariablesorthestrengthoftheglobaleconomyandtheeffectsofgovernmentintervention.Negativeeconomicconditions,suchasamajoreconomicdownturn,aprolongedrecoveryperiod,adownturninthecommoditysector,ordisruptionsinthefinancialmarkets,couldhaveamaterialadverseeffectonourbusiness,financialconditionorresultsofoperations.

We could be materially adversely affected by declines in aluminum, alumina, and bauxite prices, including global, regional and product-specific prices.

Theoverallpriceofprimaryaluminumconsistsofseveralcomponents:(i)theunderlyingbasemetalcomponent,whichistypicallybasedonquotedpricesfromtheLME;(ii)theregionalpremium,whichcomprisestheincrementalpriceoverthebaseLMEcomponentthatisassociatedwiththephysicaldeliveryofmetaltoaparticularregion(e.g.,theMidwestpremium

formetalsoldintheUnitedStates);and(iii)theproductpremium,whichrepresentstheincrementalpriceforreceivingphysicalmetalinaparticularshape(e.g.,coil,billet,slab,rod,etc.)and/oralloy.Eachoftheabovethreecomponentshasitsowndriversofvariability.

TheLMEpriceistypicallydrivenbymacroeconomicfactors,globalsupplyanddemandofaluminum(includingexpectationsforgrowthandcontractionandthelevelofglobalinventories),andtradingactivityoffinancialinvestors.Furthermore,animbalanceinglobalsupplyanddemandofaluminum,suchasdecreasingdemandwithoutcorrespondingsupplydeclines,couldhaveanegativeimpactonaluminumpricing.In2020,cashLMEpricingforaluminumexperiencedasignificantamountofvolatility,reachingahighof$2,054permetrictoninDecemberandalowof$1,420permetrictoninApril.HighLMEinventoriescouldleadtoareductioninthepriceofaluminumanddeclinesintheLMEpricehavehadanegativeimpactonourbusiness,financialcondition,andresultsofoperations.Further,inrecentyears,LMErulechangeshaveresultedinanincreasedminimumdailyload-outrateandcapsonwarehousecharges.Theserulechanges,andanysubsequentchangestheexchangechoosestomake,couldimpactthesupply/demandbalanceintheprimaryaluminumphysicalmarketandmayimpactregionaldeliverypremiumsandLMEaluminumprices.Regionalpremiumstendtovarybasedonthesupplyofanddemandformetalinaparticularregion,associatedtransportationcosts,andimporttariffs.Productpremiumsgenerallyareafunctionofsupplyanddemandforagivenprimaryaluminumshapeandalloycombinationinaparticularregion.Periodsofindustryovercapacitymayalsoresultinaweakaluminumpricingenvironment.

AsustainedweakLMEaluminumpricingenvironment,deteriorationinLMEaluminumprices,oradecreaseinregionalpremiumsorproductpremiumscouldhaveamaterialadverseeffectonourbusiness,financialcondition,orresultsofoperations.Similarly,ouroperatingresultsareaffectedbysignificantlageffectsofdeclinesinkeycostsofproductionthatarecommodityorLME-linked.

Mostofouraluminacontractscontaintwopricingcomponents:(1)theAPIpricebasis,and(2)anegotiatedadjustmentbasisthattakesintoaccountvariousfactors,includingfreight,quality,customerlocationandmarketconditions.BecausetheAPIcomponentcanexhibitsignificantvolatilityduetomarketexposure,revenuesassociatedwithouraluminaoperationsareexposedtomarketpricing.

Ourthird-partybauxitecontractsvaryinpricingstructureandlength,andcanbeimpactedbychangesinglobalaluminumandaluminabauxitemarketprices,aswellaschangesinbauxitequality.

Market-driven balancing of global aluminum supply and demand may be disrupted by non-market forces.

Inresponsetomarket-drivenfactorsrelatingtotheglobalsupplyanddemandofaluminumandalumina,wehavecurtailedorclosedportionsofouraluminumandaluminaproductioncapacity.Certainotherindustryproducershaveindependentlyundertakentoreduceproductionaswell.Reductionsinproductionmaybedelayedorimpairedbythetermsoflong-termcontractstobuyenergyorrawmaterials.

Theimpactofnon-marketforcesonglobalaluminumindustrycapacity,suchaspoliticalpressuresorgovernmentalpoliciesincertaincountriesrelatingtoemployment,theenvironment,ormaintainingorfurtherdevelopingindustryself-sufficiency,mayaffectoverallsupplyanddemandinthealuminumindustry.Forexample,ChineseexcesscapacityandincreasedexportsfromChinaofheavilysubsidizedaluminumproductscouldmateriallydisruptworldaluminummarketscausingpricingdeterioration.Industryovercapacityandthedisruptiononthemarket-drivenbalancingoftheglobalsupplyanddemandofaluminum,aresultingweakpricingenvironmentandmargincompressionmayadverselyaffectourbusiness,financialconditionandresultsofoperations.

Our profitability could be adversely affected by increases in the cost of raw materials, or by significant lag effects of decreases in commodity, LME-linked orproduction costs.

Ourbusiness,financialconditionandresultsofoperationsareaffectedbychangesinthecostofrawmaterials,includingenergy,carbonproducts,causticsodaandotherkeyinputs,aswellasfreightcostsassociatedwithtransportationofrawmaterialstorefiningandsmeltinglocations.Wemaynotbeabletofullyoffsettheeffectsofhigherrawmaterialcostsorenergycoststhroughpriceincreases,productivityimprovementsorcostreductionprograms.Declinesinthecostsofaluminaandenergyduringaparticularperiodmaynotbeadequatetooffsetsharpdeclinesinmetalpriceinthatperiod.Increasesinthecostofrawmaterialsordecreasesininputcoststhataredisproportionatetoconcurrentsharperdecreasesinthepriceofaluminumcouldhaveamaterialadverseeffectonouroperatingresults.

Our operations consume substantial amounts of energy and profitability may decline if energy costs rise or if energy supplies are interrupted or becomeuncertain.

Energysupplycontractsforouroperationsvaryinlengthandmarketexposureandcouldbenegativelyimpactedby:

• significantincreasesinspotelectricity,fueloiland/ornaturalgasprices;

• unavailabilityoforinterruptionsinenergysupplyorunplannedoutagesduetodroughts,hurricanes,wildfires,othernaturaldisasters,equipmentfailureorothercauses;

• curtailmentofoneormorerefineriesorsmeltersduetotheinabilitytoextendenergycontractsuponexpirationornegotiatenewarrangementsoncost-effectiveterms,ortheunavailabilityofenergyatcompetitiverates;or

• curtailmentofoneormorefacilitiesduetohighenergycoststhatrendertheircontinuedoperationuneconomic,discontinuationofpowersupplyinterruptibilityrightsgrantedtousunderaregulatoryregimeinthecountryinwhichthefacilityislocated,orduetoadeterminationthatenergyarrangementsdonotcomplywithapplicablelaws,thusrenderingtheoperationsthathadbeenrelyingonsuchcountry’senergyframeworkuneconomic.

Ifeventssuchasthoselistedaboveweretooccur,theresultinghighenergycosts,thedisruptionofanenergysource,therequirementtorepayalloraportionofthebenefitwereceivedunderapowersupplyinterruptibilityregime,ortherequirementtoremedyanynon-complianceofanenergyframeworktocomplywithapplicablelaws,couldhaveamaterialadverseeffectonourbusiness,financialconditionorresultsofoperations.

Business Strategy Risks

We have incurred, and may incur in the future, significant costs associated with our strategy to be a lower cost, competitive, sustainable, and integratedaluminum production business by optimizing our portfolio and disposing of non-core assets, and we may not be able to realize the anticipated benefits fromannounced plans, programs, initiatives and capital investments.

Weareexecutingastrategytobealowcost,competitive,sustainable,andintegratedaluminumproductionbusinessbyimplementingproductivityandcost-reductioninitiatives,andoptimizingourportfolioofassets,includingbydivestingnon-coreassets.Wearetakingdecisiveactionstolowerthecostbaseofouroperationsthroughprocurementstrategiesforrawmaterials,laborproductivity,improvingoperatingperformance,deployingCompany-widebusinessprocessmodels,andreducingoverheadcosts.InOctober2019,weinitiatedamulti-yearreviewofourassetstodrivelowercostsandsustainableprofitability,whichincludedthepotentialsaleofnon-coreassetsoveratwelvetoeighteen-monthperiodandananalysisofexistingproductioncapacities.Wehavebegunexecutingonthisstrategy,whichhasincludedclosingandcurtailingcertainfacilitiesandsellingcertainnon-coreassets.Wemaynotbeabletorealizetheexpectedbenefitsorcostsavingsfromthisstrategy.

Wehavemade,andmaycontinuetoplanandexecute,acquisitionsanddivestituresandtakeotheractionstogroworstreamlineourportfolio.Thereisnoassurancethatanticipatedbenefitsofourstrategicactionswillberealized.Withrespecttoportfoliooptimizationactionssuchasdivestitures,curtailments,closures,andrestarts,wemayfacebarrierstoexitfromunprofitablebusinessesoroperations,includinghighexitcostsorobjectionsfromvariousstakeholders,thelackofavailabilityofbuyerswillingtopurchasesuchassetsatpricesacceptabletous,delaysduetoanyregulatoryapprovalsorgovernmentintervention,continuingenvironmentalobligations,andthirdpartiesunwillingtoreleaseusfromguaranteesorothercreditsupportprovidedinconnectionwiththesaleofassets.Inaddition,wemayretainliabilitiesfromsuchtransactions,haveongoingindemnificationobligations,andincurunforeseenliabilitiesfordivestedentitiesifabuyerfailstohonorallcommitments.

Ourannouncedmulti-yearportfolioreviewofCompanyassetsincludesevaluatingourportfoliotoassesseachfacility’sstrategicbenefits,competitiveness,andviability.Followingthisreview,weexpecttobealowcost,firstquartileproduceracrossourproductsegmentsofbauxite,alumina,andaluminum,andhaveupto85%ofsmeltingproductionfromrenewableenergysources,whichalignswithourlong-termgoalofhavingthelowestcarbon-producingrefinersandsmeltersintheindustry.Wemaynotbeabletoimplement,fullyorinacost-effectiveortimelyway,theactionsnecessarytoachieveoursustainabilitystrategy,whichactionscouldincludecurtailments,closures,ordivestituresofassets,continuedproductinnovation,capturing,maintainingand/orexpandingmarginsfromsustainableproducts,investmentinnewtechnology,andcost-effectivelong-termenergysolutions.Wemaynotachievetheexpectedbenefitsorprofitabilityassociatedwiththisstrategy,whichcouldadverselyaffecttheCompany’sbusiness,financialcondition,andresultsofoperations.Ourbusinessoperationsarecapitalintensive,andcurtailmentorclosureofoperationsorfacilitiesmayincludesignificantcostsandcharges,includingassetimpairmentchargesandothermeasures.Therecanbenoassurancethatsuchactionswillbeundertakenorcompletedintheirentiretyasplannedattheanticipatedcost,orwillresultinbeingbeneficialtotheCompany.Theeffectofclosures,curtailments,anddivestituresovertimewillreducetheCompany’scashflowandearningscapacityandresultinalessdiversifiedportfolioofbusinesses,andwewillhaveagreaterdependencyonremainingbusinessesforourfinancialresults.Additionally,curtailingcertainexistingfacilities,whethertemporarilyorpermanently,mayrequireustoincurcurtailmentandcarryingcostsrelatedtothosefacilities,aswellasfurtherincreasedcostsshouldproductionbe

resumedatanycurtailedfacility,whichcouldhaveanadverseeffectonourbusiness,financialresultsandresultsofoperations.Executingontheseactionswillalsodivertseniormanagementtimeandresourcesfromourregularbusinessoperations.

Joint ventures, other strategic alliances, and strategic business transactions may not achieve intended results. We may experience operational challenges inintegrating or segregating assets for such a venture or transaction, and such a venture or transaction could increase the number of our outstanding shares oramount of outstanding debt and affect our financial position.

Weparticipateinjointventures,haveformedstrategicalliances,andmayenterintoothersimilararrangementsinthefuture.Forexample,AWACisanunincorporatedglobaljointventurebetweenAlcoaandAluminaLimited.AWACconsistsofanumberofaffiliatedentities,whichown,operateorhaveaninterestin,bauxiteminesandaluminarefineries,aswellasanaluminumsmelter,insevencountries.Inaddition,AlcoaispartytoajointventurewithMa’aden,theSaudiArabianMiningCompany.AlthoughtheCompanyhas,inconnectionwiththeseandourotherexistingjointventuresandstrategicalliances,soughttoprotectourinterests,jointventuresandstrategicalliancesinherentlyinvolvespecialrisks.WhetherornottheCompanyholdsmajorityinterestsormaintainsoperationalcontrolinsucharrangements,ourjointventureandotherbusinesspartnersmaytakecertainactionsandpositions,orexperiencedifficulties,thatmaynegativelyimpacttheCompanyand/oritsreputation,suchas:

• advancingeconomic,political,socialorbusinessinterestsorgoalsthatareinconsistentwith,oropposedtothoseof,theCompanyandourstakeholders;

• exercisingvetorightstoblockactionsthatwebelievetobeinourorthejointventure’sorstrategicalliance’sbestinterests;

• takingactioncontrarytoourpoliciesorobjectiveswithrespecttoourinvestments;or

• asaresultoffinancialorotherdifficulties,beunableorunwillingtofulfilltheirobligationsunderthejointventure,strategicallianceorotheragreements,suchascontributingcapitaltoexpansionormaintenanceprojects.

Wecontinuouslyevaluateandmayinthefutureenterintoadditionalstrategicbusinesstransactions.Anysuchtransactionscouldhappenatanytime,couldbematerialtoourbusinessandcouldtakeanynumberofforms,including,forexample,anacquisition,merger,saleordistributionofcertainassets,refinancing,orotherrecapitalizationormaterialstrategictransaction.Therecanbenoassurancethatourjointventures,strategicalliances,oradditionalstrategicbusinesstransactionswillbebeneficialtous,whetherduetotheabove-describedrisks,unfavorableglobaleconomicconditions,increasesincosts,foreigncurrencyfluctuations,politicalrisks,governmentinterventions,retainedliabilities,indemnificationobligations,orotherfactors.Evaluatingpotentialtransactionsandintegratingcompletedonesmaydiverttheattentionofourmanagementfromordinaryoperatingmatters.Inaddition,totheextentweconsummateanagreementforthesaleanddispositionofanassetorassetgroup,suchasthependingsaleoftheWarrickRollingMill,wemayexperienceoperationaldifficultiessegregatingthemfromourretainedassetsandoperations,whichcouldimpacttheexecutionortimingofsuchdispositionsandcouldresultindisruptionstoouroperationsand/orclaimsfordamages,amongotherthings.

Ifwecompleteastrategictransaction,wemayrequireadditionalfinancingthatcouldresultinanincreaseinthenumberofouroutstandingsharesofstockortheaggregateamountand/orcostofourdebt,whichmayresultinanadverseimpacttoourcreditratings.Thenumberofsharesofourstockortheaggregateprincipalamountofourdebtthatwemayissueinconnectionwithsuchatransactioncouldbesignificant.Moreover,thetermsofanydebtfinancingmaybeexpensiveoradverselyimpactourbusiness,financialcondition,orresultsofoperations.

Global Operational Risks

The coronavirus (COVID-19) pandemic has adversely affected, and in the future could adversely affect, the Company’s business, financial condition, or resultsof operations.

InDecember2019,therewasanoutbreakofanovelstrainofcoronavirus(COVID-19)inChinathathassincespreadtonearlyallregionsoftheworld.TheoutbreakwassubsequentlydeclaredapandemicbytheWorldHealthOrganizationinMarch2020.Todate,theCOVID-19pandemicandpreventativemeasurestakentocontainormitigatetheoutbreakhavecaused,andarecontinuingtocause,businessslowdownsorshutdownsinaffectedareasandsignificantdisruptionineconomiesandthefinancialmarketsbothgloballyandintheUnitedStates.

TheCOVID-19pandemichasresultedincertainnegativeimpactsontheCompany’sbusiness,financialcondition,andresultsofoperations.Forexample,duetotheeconomicimpactsoftheCOVID-19pandemic,therestartattheBécancour(Canada)smelterwasslowedattheendofthefirstquarterof2020butwassafelyandsuccessfullycompletedduringthethirdquarterof2020.Inaddition,theCOVID-19pandemichasnegativelyimpactedcustomerdemandforvalue-addaluminumproductsascustomershavereducedproductionlevelsinresponsetotheeconomicimpactsofthepandemic.Thisresultedinlowermarginsonaluminumproductsassalesshiftedfromvalue-addproductstocommodity-gradeproducts,primarilyduringthesecondquarterof2020.However,duringthethirdandfourthquartersof2020,value-addsalesvolume

increased11and13percent,respectively,onasequentialbasis,primarilyduetosoliddemandrecovery,particularlyintheautomotivesector.Alcoaexperiencedchallengesfromlowmetalpricesduringmid-2020;however,metalpriceshaveincreasedandstabilizedinthesecondhalfof2020.TheCompanyhasnotexperiencedanysignificantinterruptionfromitssupplysources,andtheCompany’slocationshavehadminimalcontractor-andemployee-relateddisruptionstodate.Therecanbenoassurancethatthesetrendswillcontinueornotreverse.

Thepandemiciscontinuing,andtheultimatemagnitudeanddurationoftheCOVID-19pandemicisunknown.Uncertaintyaroundthemagnitudeanddurationofa*globalpublichealthcrisiscancauseinstabilityintheglobalmarketsandeconomies,affectingourbusinessinamultitudeofwaysandinvaryingmagnitudes.AlthoughweareunabletopredicttheultimateimpactoftheCOVID-19pandemiconourbusiness,financialcondition,andresultsofoperations,ifthisglobalhealththreatpersists,itcouldadverselyaffect:

• Globaldemandforaluminum,negativelyimpactingourabilitytogeneratecashflowsfromoperations; • Ouroperations,includingcausinginterruptions,reductions,orclosuresofouroperations,duetodecreaseddemandforourproducts,government

regulationsand/orfewerworkersinthefacilitiesduetoillnessorpublichealthrestrictions; • Commercialsustainabilityofkeyvendorsortransportationdisruptionswithinoursupplychain,whichcouldresultinhigherinventorycostsand/or

inabilitytoobtainkeyrawmaterialsorfulfillcustomerorders; • Theliquidityofcustomers,whichcouldnegativelyimpactthecollectabilityofoutstandingreceivablesandourcashflows; • Alcoa’sabilitytofundcapitalexpendituresandrequiredmaintenanceatourfacilities,whichcouldnegativelyimpactourresultsofoperationsand

profitability; • Globalfinancialandcreditmarketsandourabilitytoobtainadditionalcreditorfinancinguponacceptabletermsoratall,whichcouldnegativelyaffect

ourliquidityandfinancialcondition; • TheCompany’sabilitytomeetcovenantsinouroutstandingdebtandcreditfacilityagreements; • Investmentreturnonpensionassetsandinterestrates,andcontributiondeferrals,resultinginincreasedrequiredCompanycontributionsorunfavorable

contributiontiming,negativelyimpactingfuturecashflows; • Alcoa’sabilitytogenerateincomeincertainjurisdictions,negativelyimpactingtherealizabilityofourdeferredtaxassets; • Therecoverabilityofcertainlong-livedandintangibleassets,includinggoodwill; • Thefinancialconditionofourinvestmentsandkeyjointventurepartners,negativelyimpactingtheresultsofoperations,cashflows,andrecoverabilityof

investmentbalances; • Theeffectivenessofhedginginstruments; • Legalobligationsresultingfromemployeeclaimsrelatedtohealthandsafety;and • Ourabilitytoefficientlymanagecertaincorporatefunctionsandotheractivitiesasaresultofemployeesworkingremotely.

Furtherorprolongeddeteriorationofadverseconditionscouldcontinuetonegativelyimpactourbusiness,financialcondition,andresultsofoperations,andresultinassetimpairmentcharges,includinglong-livedassetsorgoodwill,oraffecttherealizabilityofdeferredtaxassets.ThesituationsurroundingCOVID-19remainsfluid,andgivenitsinherentuncertainty,weexpectthepandemicwillcontinuetocauseinstabilityintheglobalmarketsandeconomiesinthenearterm,particularlyifthereisacontinuedincreaseinCOVID-19casesgloballyand/orinthelocationsinwhichAlcoaoperates.ThedurationandmagnitudeoftheimpactfromtheCOVID-19pandemicdependsonfuturedevelopmentsthatcannotbeaccuratelypredictedatthistime,suchastheseverityandtransmissionrateofthevirus,theemergenceofvariants,infectionratesinareaswhereweoperate,theextentandeffectivenessofcontainmentactions,includingthetimingandeffectivenessofvaccinationeffortsinthemarketswhereweoperate,andtheimpactoftheseandotherfactorsonouremployees,customers,suppliers,jointventurepartners,andequitymethodinvestments.TheimpactoftheCOVID-19pandemiccouldhaveamaterialadverseeffectonourbusiness,financialcondition,andresultsofoperations,andmayalsohavetheeffectofheighteningmanyoftheotherrisksanduncertaintiesdescribedinthis“RiskFactors”section.

Our participation in increasingly competitive and complex global markets exposes us to risks that could adversely affect our business, financial condition orresults of operations.

WehaveoperationsoractivitiesinnumerouscountriesandregionsoutsidetheUnitedStates,includingAustralia,Brazil,Canada,Europe,Guinea,andtheSaudiArabia.TherisksassociatedwiththeCompany’sglobaloperationsinclude:

• economicandcommercialinstabilityrisks,includingthosecausedbysovereignandprivatedebtdefault,corruption,andchangesinlocalgovernmentlaws,regulationsandpolicies,suchasthoserelatedtotariffsandtradebarriers,tradetensions,taxation,exchangecontrols,employmentregulations,andrepatriationofearnings;

• geopoliticalrisks,suchaspoliticalinstability,civilunrest,expropriation,nationalizationofpropertiesbyagovernment,impositionofsanctions,changestoimportorexportregulationsandfees,renegotiationornullificationofexistingagreements,miningleasesandpermits,andchangestominingroyaltyrulesorlaws;

• weakeningmacroeconomicconditions; • contractingmanufacturingactivity,especiallyintheglobalautomotivesector; • warorterroristactivities;

• majorpublichealthissues,suchasanoutbreakofapandemicorepidemic,whichcouldcausedisruptionsinouroperations,supplychain,orworkforce;

• difficultiesenforcingintellectualpropertyandcontractualrights,orlimitationsintheprotectionoftechnology,data,andintellectualproperty,incertainjurisdictions;and

• unexpectedevents,accidents,orenvironmentalincidents,includingnaturaldisasters.

Whiletheimpactofanyoftheforegoingfactorsisdifficulttopredict,anyoneormoreofthemcouldadverselyaffectourbusiness,financialcondition,orresultsofoperations.Existinginsurancearrangementsmaynotprovidesufficientcoverageorreimbursem*ntforsignificantcoststhatmayarisefromsuchevents.

Aswecontinuetooperateglobally,wemayfacegreatercompetitionfromcertaingeographicregions,includingAsia,whereChinaisactivelypromotingandsubsidizingitsaluminumindustry,andnegativelyaffectingpricesoutsideofChina.TheseactionsbyChinaandtradebarriersmayrestrictusfromparticipatingintheChinesemarketandpreventusfromcompetingeffectivelywithChinesecompanies.Additionally,certaincompetitorspossessfinancial,technicalandmanagementresourcestodevelopandmarketproductsthatmaycompetefavorablyagainstourproducts,andconsolidationamongourcompetitorsmayalsoallowthemtocompetemoreeffectively.

Our global operations expose us to risks related to economic, political, and social conditions, including the impact of trade policies and adverse industrypublicity, which may negatively impact our business.

Wearesubjecttorisksassociatedwithdoingbusinessinternationally,includingtheeffectsofforeignanddomesticlawsandregulations,foreignordomesticgovernmentfiscalandpoliticalcrises,politicalandeconomicdisputesandsanctions,andadverseindustrypublicity.Thesefactors,amongothers,bringuncertaintytothemarketsinwhichwecompete,andmayadverselyaffectourbusiness,financialcondition,resultsofoperations.Forexample,theimpactofenvironmentalandsupplymanagementregulatoryreformsinChinacouldadverselyimpactourbusiness,financialcondition,andresultsofoperations.Inaddition,weoperateincommunitiesaroundtheworld,andincidentsrelatedtoourindustrycouldgeneratenegativepublicityandimpactthesocialacceptabilityofouroperationsinsuchlocationsbydamagingourreputation,ourrelationshipswithstakeholders,andourcompetitiveposition.

IntheUnitedStates,inrecentyears,thepriorgovernmentadministrationpubliclysupported,andtookactionwithrespectto,theimplementationofsignificantchangestocertaintradepolicies,includingimporttariffsandquotas,modificationstointernationaltradepolicy,thewithdrawalfromorrenegotiationofcertaintradeagreements,andotherchangesthathaveaffectedU.S.traderelationswithothercountries,anyofwhichmayrequireustosignificantlymodifyourcurrentbusinesspracticesormayotherwisemateriallyandadverselyaffectourbusinessorthoseofourcustomers.Itisunclearwhetherthecurrentadministrationwillcontinuewiththesepolicies.Forexample,theCompanywassubjecttoU.S.tariffsonitsaluminumproductsproducedinandimportedfromCanadaunderSection232oftheTradeExpansionActof1962(Section232)foraportionof2020.InOctober2020,theU.S.governmentfullyreinstatedapreviousexemptiononaluminumimportsfromCanadaretroactivetoSeptember1,2020.Inaddition,suchpoliciescouldalsoresultinretaliatoryactionsbyU.S.tradingpartners.Asaresultoftheseorotherpotentialtradeactions,certainaffectedcountriesandotherforeigngovernmentshaveinitiatedormayimposeretaliatorytrademeasuresonaluminumproducedintheUnitedStates.Totheextentthatfurthertariffsareimposedonabroaderrangeofimports,orthesetariffsandothertradeactionsresultinadecreaseininternationaldemandforaluminumproducedintheUnitedStatesorotherwisenegativelyimpactdemandforourproducts,ourbusinessmaybeadverselyimpacted,andcouldfurtherexacerbatealuminumandaluminapricevolatilityandoverallmarketuncertainty.

Our global operations expose us to various legal and regulatory systems, and changes in conditions beyond our control in foreign countries.

InadditiontothebusinessrisksinherentinoperatingoutsidetheUnitedStates,legalandregulatorysystemsinforeigncountriesmaybelessdevelopedandpredictable,andthepossibilityofvarioustypesofadversegovernmentalactionmaybemorepronounced.Unexpectedoruncontrollableeventsorcirc*mstancesinanyoftheforeignmarketsinwhichweoperate,includingactionsbyforeigngovernmentssuchaschangesinforeignpolicyorfiscalregimes,terminationofourleasesoragreementswithsuchforeigngovernments,increasedgovernmentregulation,orforcedcurtailmentorcontinuationofoperations,couldmateriallyandadverselyaffectourbusiness,financialcondition,orresultsofoperations.

Weakness in global economic conditions or in any of the industries or geographic regions in which we or our customers operate, and the cyclical nature of ourcustomers’ businesses, could adversely impact our revenues and profitability by reducing demand and margins.

Ourbusiness,financialcondition,andresultsofoperationsmaybemateriallyaffectedbytheconditionsintheglobaleconomygenerallyandinglobalcapitalmarkets,includingvolatilityinthecapitalmarketsandintheendmarketsandgeographicregionsinwhichweandourcustomersoperate(includingasaresultofCOVID-19).Manyofthemarketsinwhichourcustomersparticipatearealsocyclicalinnatureandexperiencesignificantfluctuationsindemandfortheirproductsbasedoneconomicconditions,consumerdemand,rawmaterialandenergycosts,andgovernmentactions.Manyofthesefactorsarebeyondourcontrol.

Adeclineinconsumerandbusinessconfidenceandspending,severereductionsintheavailabilityandcostofcredit,andvolatilityinthecapitalandcreditmarketscouldadverselyaffectthebusinessandeconomicenvironmentinwhichweoperateandtheprofitabilityofourbusiness.Wearealsoexposedtorisksassociatedwiththecreditworthinessofoursuppliersandcustomers.Iftheavailabilityofcredittofundorsupportthecontinuationandexpansionofourcustomers’businessoperationsiscurtailedorifthecostofthatcreditisincreased,theresultinginabilityofourcustomersoroftheircustomerstoeitheraccesscreditorabsorbtheincreasedcostofthatcreditcouldadverselyaffectourbusinessbyreducingoursalesorbyincreasingourexposuretolossesfromuncollectiblecustomeraccounts.Theseconditionsandadisruptionofthecreditmarketscouldalsoresultinfinancialinstabilityofsomeofoursuppliersandcustomers.Theconsequencesofsuchadverseeffectscouldincludetheinterruptionofproductionatthefacilitiesofourcustomers,thereduction,delayorcancellationofcustomerorders,delaysorinterruptionsofthesupplyofrawmaterialswepurchase,andbankruptcyofcustomers,suppliersorothercreditors.Anyoftheseeventscouldadverselyaffectourprofitability,cashflowandfinancialcondition.

We are exposed to fluctuations in foreign currency exchange rates and interest rates, as well as inflation and other economic factors in the countries in whichwe operate.

Economicfactors,includinginflationandfluctuationsinforeigncurrencyexchangeratesandinterestrates,competitivefactorsinthecountriesinwhichweoperate,andcontinuedvolatilityordeteriorationintheglobaleconomicandfinancialenvironment,couldaffectourbusiness,financialcondition,andresultsofoperations.ChangesinthevaluationoftheU.S.dollaragainstothercurrencies,particularlytheAustraliandollar,Brazilianreal,Canadiandollar,Euro,andNorwegiankroner,mayaffectourprofitability,assomeimportantinputsarepurchasedinothercurrencies,whileourproductsaregenerallysoldinU.S.dollars.AstheU.S.dollarstrengthens,thecostcurveshiftsdownforsmeltersoutsidetheUnitedStates,butcostsforourU.S.smeltingportfoliomaynotdecline.

Unanticipated changes in tax laws or exposure to additional tax liabilities could affect our future profitability.

WearesubjecttoincometaxesinboththeUnitedStatesandvariousnon-U.S.jurisdictions.Unanticipatedchangesinforeignanddomestictaxlaws,regulations,orpolicies,ortheirinterpretationandapplicationbyregulatorybodies,orexposuretoadditionaltaxliabilitiescouldaffectourfutureprofitability.Ourdomesticandinternationaltaxliabilitiesaredependentuponthedistributionofincomeamongthesedifferentjurisdictions.Ourtaxexpenseincludesestimatesofadditionaltaxthatmaybeincurredfortaxexposuresandreflectsvariousestimatesandassumptions.TheassumptionsincludeassessmentsoffutureearningsoftheCompanythatcouldimpactthevaluationofourdeferredtaxassets.Ourfutureresultsofoperationscouldbeadverselyaffectedbychangesintheeffectivetaxrateasaresultofachangeinthemixofearningsincountrieswithdifferingstatutorytaxrates,changesintheoverallprofitabilityoftheCompany,changesintaxlegislationandrates,changesingenerallyacceptedaccountingprinciples,andchangesinthevaluationofdeferredtaxassetsandliabilities.Significantchangestotaxlawsorregulationscouldhaveasubstantialimpact,positiveornegative,onoureffectivetaxrate,cashtaxexpendituresandcashflows,anddeferredtaxassetsandliabilities.Wearesubjecttotaxauditsbyvarioustaxauthoritiesinmanyjurisdictions,suchasAustralia,Brazil,Canada,andSpain.Forexample,inJuly2020,AofAreceivedNoticesofAssessment(theNotices)fromtheAustralianTaxationOffice(ATO)relatedtothepricingofcertainhistoricthird-partyaluminasales.TheNoticesassertedclaimsforincometaxpayablebyAofAofapproximately$165(A$214),exclusiveofinterestandpenalties.TheNoticesalsoincludeclaimsforcompoundedinterestonthetaxamounttotalingapproximately$544(A$707).InaccordancewiththeATO’sdisputeresolutionpractices,

AofApaid50%oftheassessedincometaxamountexclusiveofinterestandanypenaltiestotheATOduringthethirdquarterof2020,andtheATOisnotexpectedtoseekfurtherpaymentpriortofinalresolutionofthematter.IfAofAisultimatelysuccessful,anyamountspaidtotheATOaspartofthe50%paymentwouldberefunded.TheCompanydoesnotagreewiththeATO’spositions,andAofAwillcontinuetodefendthismatterandpursueallavailabledisputeresolutionmethods,uptoandincludingthefilingofproceedingsintheAustralianCourts.Weregularlyassessthepotentialoutcomesofexaminationsbytaxauthoritiesindeterminingtheadequacyofourprovisionforincometaxes.Theresultsoftaxauditsandexaminationsofpreviouslyfiledtaxreturnsorrelatedlitigationandcontinuingassessmentsofourtaxexposurescouldmateriallyaffectourfinancialresults.SeePartIIItem8ofthisForm10-KinNotesQandStotheConsolidatedFinancialStatementsundercaptionsUnrecognizedTaxBenefitsandContingencies,respectively.

We may be exposed to significant legal proceedings, investigations or changes in foreign and/or U.S. federal, state, or local laws, regulations or policies.

Ourresultsofoperationsorliquidityinaparticularperiodcouldbeaffectedbyneworincreasinglystringentlaws,regulatoryrequirementsorinterpretations,oroutcomesofsignificantlegalproceedingsorinvestigationsadversetotheCompany.Wemaybecomesubjecttounexpectedorrisingcostsassociatedwithbusinessoperations,compliancemeasures,orprovisionofhealthorwelfarebenefitstoemployeesduetochangesinlaws,regulationsorpolicies.Wearealsosubjecttoavarietyoflegalandcompliancerisks,including,amongotherthings,potentialclaimsrelatingtohealthandsafety,environmentalmatters,intellectualpropertyrights,productliability,dataprivacy,taxesandcompliancewithU.S.andforeignexport,anti-bribery,andcompetitionlaws,andsalesandtradingpractices.Wecouldbesubjecttofines,penalties,interest,ordamages(incertaincases,trebledamages).Inaddition,ifweviolatethetermsofouragreementswithgovernmentalauthorities,wemayfaceadditionalmonetarysanctionsandotherremediesasacourtdeemsappropriate.

Whilewebelievewehaveadoptedappropriateriskmanagementandcomplianceprogramstoaddressandreducetheserisks,theglobalanddiversenatureofouroperationsmeansthattheseriskscontinuetoexist,andadditionallegalproceedingsandcontingenciesmayarisefromtimetotime.Inaddition,variousfactorsordevelopmentscanleadtheCompanytochangecurrentestimatesofliabilitiesormakeestimatesformatterspreviouslynotsusceptibleofreasonableestimates,suchasasignificantjudicialruling,judgment,orsettlement,orsignificantregulatorydevelopmentsorchangesinapplicablelaw.Afutureadverserulingorsettlementorunfavorablechangesinlaws,regulationsorpolicies,orothercontingenciesthattheCompanycannotpredictwithcertaintycouldhaveamaterialadverseeffectonourresultsofoperationsorcashflowsinaparticularperiod.SeePartIItem3ofthisForm10-KandPartIIItem8ofthisForm10-KinNoteStotheConsolidatedFinancialStatementsundercaptionContingencies.

We are subject to a broad range of health, safety and environmental laws, regulations and other requirements in the jurisdictions in which we operate that mayexpose us to substantial claims, costs, and liabilities.

Ouroperationsworldwidearesubjecttonumerouscomplexandincreasinglystringentfederal,state,localandforeignlaws,regulations,policies,andotherrequirements,includingthoserelatedtohealth,safety,environmental,andwastemanagementanddisposalmatters,whichmayexposeustosubstantialclaims,costs,andliabilities.Wemaybesubjecttofines,penaltiesandotherdamages,suchasnaturalresourcedamagesandthecostsassociatedwiththeinvestigationandcleanupofsoil,surfacewater,groundwater,andothermediaunderlawssuchasCERCLA(commonlyknownasSuperfund)orsimilarU.S.andforeignregulations.Theselaws,regulations,policies,andotherrequirementscouldchangeorbeappliedorinterpretedinwaysthatcould(i)requireustoenjoin,curtail,closeorotherwisemodifyouroperations,includingtheimplementationofcorrectivemeasures,theinstallationofadditionalequipment,ortheundertakingofotherremedialactions,or(ii)subjectustoenforcementriskorimposeonorrequireustoincuradditionalcapitalexpenditures,complianceorothercosts,fines,orpenalties,anyofwhichcouldadverselyaffectourresultsofoperations,cashflowsandfinancialcondition,andthetradingpriceofourcommonstock.

Thecostsofcomplyingwithsuchlaws,regulations,policiesandotherrequirements,includingparticipationinassessments,remediationactivities,andcleanupsofsites,aswellasinternalvoluntaryprograms,aresignificantandwillcontinuetobesofortheforeseeablefuture.Environmentallawsmayimposecleanupliabilityonownersandoccupiersofcontaminatedproperty,includingpreviouslyowned,non-operational,ordivestedproperties,regardlessofwhethertheownersandoccupierscausedthecontaminationorwhethertheactivitythatcausedthecontaminationwaslawfulatthetimeitwasconducted.Asaresult,wemaybesubjecttoclaimsarisingfromcurrentorformerconditionsatsitesthatweownoroperatecurrently,aswellasatsitesthatweownedoroperatedinthepast,andatcontaminatedsitesthathavealwaysbeenownedoroperatedbythirdparties,regardlessofwhetherwecausedthecontaminationorwhethertheactivitythatcausedthecontaminationwaslawfulatthetimeitwasconducted.Liabilitymaybewithoutregardtofaultandmaybejointandseveral,sothatwemaybeheldresponsibleformorethanourshareofthecontaminationorotherdamages,orevenfortheentireshare.Inaddition,becauseenvironmentallaws,regulations,policiesandotherrequirementsareconstantlyevolving,wewillcontinuetoincurcoststomaintaincomplianceandsuchcostscouldincreasemateriallyandprovetobemorelimitingandcostlythanweanticipate.Evolvingstandardsandexpectationscanresultinincreasedlitigationand/orincreasedcosts,allof

whichcanhaveamaterialandadverseeffectonourbusinessoperations,earningsandcashflows.Futurecompliancewithenvironmental,healthandsafetylegislationandotherregulatoryrequirementsorexpectationsmayprovetobemorelimitingandcostlythanweanticipateandmaydisruptourbusinessoperationsandrequiresignificantexpenditures.Ourbusiness,financialcondition,orresultsofoperationsinaparticularperiodcouldbemateriallyaffectedbycertainhealth,safetyorenvironmentalmatters,includingremediationcostsanddamagesrelatedtocertainsites.Our operations include impoundment structures, which could impact the environment or cause exposure to hazardous substances or other damage, whichcould result in material liabilities to us.Someofouroperationsgeneratehazardouswasteandotherbyproducts,whichwecontainintailingfacilities,residuestorageareas,andotherstructuralimpoundmentsthataresubjecttoextensiveregulation.Overtoppingofstorageareascausedbyextremeweatherevents,erosion,orunanticipatedstructuralfailureofimpoundmentscouldresultinsevere,andinsomecasescatastrophic,damagetotheenvironment,naturalresources,orproperty,orpersonalinjuryandlossoflife.Theseandothersimilarimpactsthatouroperationsmayhaveontheenvironment,aswellasexposurestohazardoussubstancesorwastesassociatedwithouroperations,couldresultinsignificantcosts,civilorcriminaldamages,finesorpenalties,andenforcementactionsissuedbyregulatoryorjudicialauthoritiesenjoining,curtailingorclosingoperationsorrequiringcorrectivemeasures,anyofwhichcouldmateriallyandadverselyaffectus.Climate change, climate change legislation or regulations, extreme weather conditions, and greenhouse gas effects may adversely impact our operations andmarkets.Energyisasignificantinputinanumberofouroperationsandthereisgrowingrecognitionthatconsumptionofenergyderivedfromfossilfuelsisacontributortoclimatechange.Anumberofgovernmentsorregulatorybodiesinareaswhereweoperatehaveintroducedorarecontemplatinglegislativeandregulatorychangeinresponsetothepotentialimpactsofclimatechange.Wecouldseechangesinthemarginsofgreenhousegas-intensiveassetsandenergy-intensiveassetsasaresultofregulatoryimpactsinthecountriesinwhichweoperate.Theseregulatorymechanismsmaybeeithervoluntaryorlegislatedandmayimpactouroperationsdirectlyorindirectlythroughcustomersoroursupplychain.ClimatechangeandtheinconsistencyofassociatedregulationsmayimpactthecompetitivenessoftheCompany,includingtheattractivenessofthelocationsofsomeoftheCompany’sassets.Assessmentsofthepotentialimpactoffutureclimatechangelegislation,regulationandinternationaltreatiesandaccordsareuncertain,giventhewidescopeofpotentialregulatorychangeincountriesinwhichweoperate.Wemayrealizeincreasedcapitalexpendituresresultingfromrequiredcompliancewithrevisedornewlegislationorregulations,coststopurchaseorprofitsfromsalesof,allowancesorcreditsunderacarboncredit/pricingor“capandtrade”system,increasedinsurancepremiumsanddeductiblesasnewactuarialtablesaredevelopedtoreshapecoverage,achangeincompetitivepositionrelativetoindustrypeers,andchangestoprofitorlossarisingfromincreasedordecreaseddemandforgoodsproducedbytheCompanyand,indirectly,fromchangesincostsofgoodssold.ThepotentialphysicalimpactsofclimatechangeorextremeweatherconditionsontheCompany’soperationsarehighlyuncertainandwillbeparticulartothegeographiccirc*mstances.Thesemayincludechangesinrainfallpatterns,wildfires,heatwaves,shortagesofwaterorothernaturalresources,changingsealevels,changingstormpatterns,flooding,increasedfrequencyandintensitiesofstorms,andchangingtemperaturelevels.Anyofthesemaydisruptouroperations,hindertransportationofourproductstocustomers,preventaccesstoourfacilities,negativelyimpactoursuppliers’orcustomers’operationsandtheirabilitytofulfillcontractualobligationstous,and/ordamageourfacilities,allofwhichmayincreaseourcosts,reduceproductionandadverselyaffectourbusiness,financialcondition,orresultsofoperations.

We face significant competition, which may have an adverse effect on profitability.

WecompetewithavarietyofbothU.S.andnon-U.S.aluminumindustrycompetitorsaswellaswithproducersofothermaterials,suchassteel,titanium,plastics,composites,ceramics,andglass,amongothers.Useofsuchmaterialscouldreducethedemandforaluminumproducts,whichmayreduceourprofitabilityandcashflow.Factorsaffectingourabilitytocompeteincludeincreasedcompetitionfromoverseasproducers,ourcompetitors’pricingstrategies,theintroductionoradvancementofnewtechnologiesandequipmentbyourcompetitorsorourcustomers,changesinourcustomers’strategyormaterialrequirements,andourabilitytomaintainthecost-efficiencyofourfacilities.Inaddition,ourcompetitivepositiondepends,inpart,onourabilitytooperateasanintegratedaluminumvaluechain,leverageinnovationexpertiseacrossbusinessesandkeyendmarkets,andaccessaneconomicalpowersupplytosustainouroperationsinvariouscountries.SeeBusiness—Competition.

Available Capital and Credit-Related Risks

Our business and growth prospects may be negatively impacted by limits on our ability to fund capital expenditures.

Werequiresubstantialcapitaltoinvestingrowthopportunitiesandtomaintainandprolongthelifeandcapacityofourexistingfacilities.Ourabilitytogeneratecashflowsisaffectedbymanyfactors,includingmarketandpricingconditions.Insufficientcashgenerationorcapitalprojectoverrunsmaynegativelyimpactourabilitytofundasplannedoursustaining

andreturn-seekingcapitalprojects,andsuchpostponementinfundingcapitalexpendituresorinadequatefundingtocompleteprojectscouldresultinoperationalissues.Inaddition,totheextentouraccesstocompetitivefinancial,credit,capitaland/orbankingmarketsbecomesimpaired,ouroperations,financialresultsandcashflowscouldbeadverselyimpacted.Wemayalsoneedtoaddresscommercial,political,andsocialissuesinrelationtocapitalexpendituresincertainofthejurisdictionsinwhichweoperate.Ifourinterestinourjointventuresisdilutedorwelosekeyconcessions,ourgrowthcouldbeconstrained.Anyoftheforegoingcouldhaveamaterialadverseeffectonourbusiness,resultsofoperations,financialconditionandprospects.

Deterioration in our credit profile or increases in interest rates could increase our costs of borrowing money and limit our access to the capital markets andcommercial credit.

Themajorcreditratingagenciesevaluateourcreditworthinessandgiveusspecifiedcreditratings.Theseratingsarebasedonanumberoffactors,includingourfinancialstrengthandfinancialpoliciesaswellasourstrategies,operationsandexecutionofannouncedactions.Thesecreditratingsarelimitedinscopeanddonotaddressallmaterialrisksrelatedtoaninvestmentinus,butratherreflectonlytheviewofeachratingagencyatthetimeitsratingisissued.Nonetheless,thecreditratingswereceiveimpactourborrowingcostsaswellasouraccesstosourcesofcapitalontermsadvantageoustoourbusiness.Failuretoobtainsufficientlyhighcreditratingscouldadverselyaffectourinterestratesinfuturefinancings,ourliquidity,orourcompetitiveposition,andcouldalsorestrictouraccesstocapitalmarkets.Inaddition,ourcreditratingscouldbeloweredorwithdrawnentirelybyaratingagencyif,initsjudgment,thecirc*mstanceswarrant.Ifaratingagencyweretodowngradeourrating,ourborrowingcostscouldincrease,ourfundingsourcescoulddecrease,andwewouldneedtorelyonourcashflowsfromoperations.Asaresultofthesefactors,adowngradeofourcreditratingscouldhaveamateriallyadverseimpactonourfutureoperations,cashflows,andfinancialposition.

Inaddition,ourvariablerateindebtednessmayuseLondonInterbankOfferingRate(LIBOR)asabenchmarkforestablishingtherate.LIBORhasbeenthesubjectofrecentnational,internationalandotherregulatoryguidanceandproposalsforreform,andin2017,theU.K.FinancialConductAuthorityannouncedthatitintendstophaseoutLIBORbytheendof2021,whichissubjecttopossibleextension.ThefinancialindustryiscurrentlytransitioningawayfromLIBORasabenchmarkfortheinterbanklendingmarket.Thediscontinuation,reform,orreplacementofLIBORoranyotherbenchmarkratesmayhaveanimpactoncontractualmechanicsinthecreditmarketorcausedisruptioninthebroaderfinancialmarkets.Theconsequencesofthesedevelopmentscannotbeentirelypredictedbutcouldincludeanincreaseinthecostofourvariablerateindebtedness.

Our indebtedness restricts our current and future operations, which could adversely affect our ability to respond to changes in our business and manage ouroperations.

AlcoaandAlcoaNederlandHoldingB.V.(ANHBV),awholly-ownedsubsidiaryofAlcoa,arepartytoarevolvingcreditagreementwithasyndicateoflendersandissuersnamedtherein(assubsequentlyamended,theRevolvingCreditFacility).ThetermsoftheRevolvingCreditFacilityandtheindenturesgoverningouroutstandingnotescontaincovenantsthatimposesignificantoperatingandfinancialrestrictionsonus,includingonourabilityto,amongotherthings:

• makeinvestments,loans,advances,andacquisitions;

• amendcertainmaterialdocuments;

• disposeofassets;

• incurorguaranteeadditionaldebtandissuecertaindisqualifiedequityinterestsandpreferredstock;

• makecertainrestrictedpayments,includinglimitingtheamountofdividendsonequitysecuritiesandpaymentstoredeem,repurchaseorretireequitysecuritiesorotherindebtedness;

• engageintransactionswithaffiliates;

• materiallyalterthebusinessweconduct;

• enterintocertainrestrictiveagreements;

• createliensonassetstosecuredebt;

• consolidate,merge,sellorotherwisedisposeofallorsubstantiallyallofAlcoa’s,ANHBV’sorasubsidiaryguarantor’sassets;and

• takeanyactionsthatwouldreduceourownershipofAWACentitiesbelowanagreedlevel.

TheRevolvingCreditFacilityrequiresustocomplywithfinancialcovenantswhichincludesmaintaininganinterestexpensecoverageratioofnotlessthan5.00to1.00,andaleverageratiothatisnotgreaterthan3.00to1.00forthefourconsecutivefiscalquartersbeginninginthesecondquarterof2020.Theleverageratiorequirementwillreturnto2.50to1.00beginninginthesecondquarterof2021.TheleverageratiocomparestotalindebtednesstoConsolidatedEBITDA(asdefinedintheRevolvingCreditFacility)todeterminecompliancewiththefinancialcovenant.TheleverageratiocalculationalsodeterminesthemaximumindebtednesspermittedundertheRevolvingCreditFacility.Theresultsofthecalculationofthese

ratios,whenconsideringtheCompany’sexistingdebtobligations,affectsandcouldrestricttheamountofadditionalborrowingcapacityundertheCompany’sRevolvingCreditFacilityorothercreditfacilities.

Inaddition,allobligationsofAlcoaCorporationoradomesticentityundertheRevolvingCreditFacilityaresecuredby,subjecttocertainexceptions,afirstprioritylienonsubstantiallyallassetsofAlcoaCorporationandthematerialdomesticwholly-ownedsubsidiariesofAlcoaCorporationandcertainequityinterestsofspecifiednon-U.S.subsidiaries.AllotherobligationsundertheRevolvingCreditFacilityaresecuredby,subjecttocertainexceptions,afirstprioritysecurityinterestinsubstantiallyallassetsofAlcoaCorporation,ANHBV,thematerialdomesticwholly-ownedsubsidiariesofAlcoaCorporation,andthematerialforeignwholly-ownedsubsidiariesofAlcoaCorporationlocatedinAustralia,Brazil,Canada,Luxembourg,theNetherlands,Norway,andSwitzerlandincludingequityinterestsofcertainsubsidiariesthatdirectlyholdequityinterestsinAWACentities.Ourabilitytocomplywiththeseagreementsmaybeaffectedbyeventsbeyondourcontrol,includingprevailingeconomic,financialandindustryconditions.Thesecovenantscouldhaveanadverseeffectonourbusinessbylimitingourabilitytotakeadvantageoffinancing,mergerandacquisition,orotheropportunities.ThebreachofanyofthesecovenantsorrestrictionscouldresultinadefaultundertheRevolvingCreditFacilityortheindenturesgoverningournotesandotheroutstandingindebtedness,includingsuchindebtednessforwhichtheCompanyisaguarantor.

SeePartIIItem7ofthisForm10-KinManagement’sDiscussionandAnalysisofFinancialConditionandResultsofOperationsundercaptionLiquidityandCapitalResources–FinancingActivitiesformoreinformationontherestrictivecovenantsintheRevolvingCreditFacility.

Our failure to comply with the agreements relating to our outstanding indebtedness, including due to events beyond our control, could result in an event ofdefault that could materially and adversely affect our business, financial condition, results of operations or cash flows.

Ifaneventofdefaultweretooccurunderanyoftheagreementsrelatingtoouroutstandingindebtedness,includingtheRevolvingCreditFacilityandtheindenturegoverningournotes,wemaynotbeabletoincuradditionalindebtednessundertheRevolvingCreditFacilityandtheholdersofthedefaulteddebtcouldcauseallamountsoutstandingwithrespecttothatdebttobedueandpayableimmediately.Wecannotassurethatourassetsorcashflowwouldbesufficienttofullyrepayborrowingsunderouroutstandingdebtinstrumentsifaccelerateduponaneventofdefault,whichcouldhaveamaterialadverseeffectonourabilitytocontinuetooperateasagoingconcern.Further,ifweareunabletorepay,refinanceorrestructureoursecuredindebtedness,theholdersofsuchindebtednesscouldproceedagainstthecollateralsecuringthatindebtedness.Inaddition,anyeventofdefaultordeclarationofaccelerationunderonedebtinstrumentalsocouldresultinaneventofdefaultunderoneormoreofourotherdebtinstruments.

Cybersecurity Risks

Cyber attacks, security breaches, system failures, or other cyber incidents may threaten the integrity of our information technology infrastructure and othersensitive business information, disrupt our operations and business processes, expose us to potential liability, and result in reputational harm and othernegative consequences that could have a material adverse effect on our business, financial condition and results of operations.

Wedependoninformationandcommunicationstechnology,networks,software,andrelatedsystemstooperateourbusiness,includingproductioncontrolsandoperatingsystemsatourfacilitiesandsystemsforrecordingandprocessingtransactions,interfacingwithcustomers,financialreporting,andprotectingthepersonaldataofouremployeesandotherconfidentialinformation.Ourglobaloperationsrequireincreasedrelianceontechnology,whichexposeustorisksoftheftofproprietaryinformation,includingtradesecretsandotherintellectualproperty.Theprotectionofsuchinformation,aswellassensitivecustomerinformation,personaldataofouremployees,andotherconfidentialinformation,iscriticaltous.Wefaceglobalcybersecuritythreats,whichmayrangefromuncoordinatedindividualattemptstosophisticatedandtargetedmeasures,knownasadvancedpersistentthreats,directedattheCompany.Inaddition,agreaternumberofouremployeesareworkingremotelyasaresultoftheCOVID-19pandemic,whichmayincreasecybersecurityvulnerabilitiesandrisktoourinformationtechnologiessystems.

Cyberattacksandothercyberincidentsarebecomingmorefrequentandsophisticated,areconstantlyevolving,andarebeingmadebygroupsandindividualswithsignificantresourcesandawiderangeofexpertiseandmotives.Cyberattacksandsecuritybreachesmayinclude,butarenotlimitedto,unauthorizedattemptstoaccessinformationordigitalinfrastructure,effortstodirectpaymentstofictitiousparties,viruses,ransomware,maliciouscodes,hacking,phishing,denialofservice,humanerror,andotherelectronicsecuritybreaches.Astechniquesusedincyberattackschangefrequentlyandmaynotbeimmediatelydetectable,wemaybeunabletoanticipatethesetechniques,includingthescopeandimpactofanincident,containtheincidentwithinoursystems,orimplementpreventativeorremediationmeasures.Wehaveexperiencedattemptsbyexternalpartiestopenetrateournetworksandsystems.Inaddition,weutilizethirdpartyvendorsforcertainsoftwareapplications,storagesystems,andcloudcomputingservices.Cyberattacksorsecuritybreachesontheinformationtechnologysystemsofourserviceprovidersorbusinesspartnerscouldimpactus.Suchattemptstodatehavenotresultedinanymaterialbreaches,disruptions,orlossofinformation.

Wecontinuetoassesspotentialcyberthreatsandinvestinourinformationtechnologyinfrastructuretoaddressthesethreats,includingbymonitoringnetworksandsystems,trainingemployeesoncyberthreats,andenhancingsecuritypoliciesoftheCompanyanditsthirdpartyproviders.WhiletheCompanycontinuallyworkstostrengthenoursystemsandsecuritymeasures,safeguardinformation,andmitigatepotentialrisks,thereisnoassurancethatsuchactionswillbesufficienttopreventcyberattacksorsecuritybreaches.Theseeventscouldmanipulateorimproperlyuseoursystemsornetworks,discloseorcompromiseconfidentialorprotectedinformation,destroyorcorruptdata,orotherwisedisruptouroperations.

Inaddition,theseeventscouldnegativelyimpactourreputationandcompetitiveposition,andcouldresultinlitigationwiththirdparties,regulatoryaction,lossofbusiness,theftofassets,andsignificantremediationcosts,anyofwhichcouldhaveamaterialadverseeffectonourfinancialconditionandresultsofoperations.SuchsecuritybreachescouldalsoresultinaviolationofapplicableU.S.andinternationalprivacyandotherlaws,andsubjectustolitigationandgovernmentalinvestigationsandproceedings,anyofwhichcouldresultinourexposuretomaterialcivilorcriminalliability.Forexample,theEuropeanUnion’sGeneralDataPrivacyRegulationsubjectscompaniestoarangeofcomplianceobligationsregardingthehandlingofpersonaldata.IntheeventouroperationsarefoundtobeinviolationoftheGDPR’srequirements,wemaybesubjecttosignificantcivilpenalties,businessdisruptionandreputationalharm,anyofwhichcouldhaveamaterialadverseeffectonourbusiness,financialcondition,orresultsofoperations.Cyberattacksorbreachescouldrequiresignificantmanagementattentionandresources,andresultinthediminutionofthevalueofourinvestmentinresearchanddevelopment.

Thoughwehavedisasterrecoveryandbusinesscontinuityplansinplace,ifourinformationtechnologysystems,orthoseofourthirdpartyproviders,aredamaged,breached,interrupted,orceasetofunctionproperlyforanyreason,and,ifthedisasterrecoveryandbusinesscontinuityplansdonoteffectivelyresolvetheincidentonatimelybasis,wemaysufferinterruptionsinourabilitytomanageorconductbusinessandwemaybeexposedtoreputational,competitiveandbusinessharmaswellaslitigationandregulatoryaction,whichmayadverselyimpactourbusiness,financialcondition,orresultsofoperations.

Labor- and Pension-Related Risks

Union disputes and other employee relations issues could adversely affect our business, financial condition, or results of operations.

Asignificantportionofouremployeesarerepresentedbylaborunionsinanumberofcountriesundervariouscollectivebargainingagreementswithvaryingdurationsandexpirationdates.Uniondisputesandotheremployeerelationsissuescouldadverselyaffectourbusiness,financialcondition,orresultsofoperations.Forexample,inNovember2020wefacedaworkers’strikeatourSanCipriánrefineryandsmelterinSpain,whichslowedproductionandblockedmetalshipmentsuntilJanuary2021.Theworkforcesituationthereremainstenuousasweevaluateoptionsforthesmelter’sfuture.

Wemaynotbeabletosatisfactorilyrenegotiatecollectivebargainingagreementswhentheyexpire.Inaddition,existingcollectivebargainingagreementsmaynotpreventstrikes,workstoppages,workslowdowns,unionorganizingcampaigns,orlockoutsatourfacilitiesinthefuture.Wemayalsobesubjecttogeneralcountrystrikesorworkstoppagesunrelatedtoourbusinessorcollectivebargainingagreements.Alabordisputeorworkstoppageofemployeescouldhaveamaterialadverseeffectonproductionatoneormoreofourfacilities,anddependingonthelengthofworkstoppage,onourbusiness,financialcondition,orresultsofoperations.

An adverse decline in the liability discount rate, lower-than-expected investment return on pension assets and other factors could affect our business, financialcondition, results of operations or amount of pension funding contributions in future periods.

Ourresultsofoperationsmaybenegativelyaffectedbytheamountofexpensewerecordforourpensionandotherpostretirementbenefitplans,reductionsinthefairvalueofplanassets,andotherfactors.WecalculateincomeorexpenseforourplansusingactuarialvaluationsinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica(GAAP).

Thesevaluationsreflectassumptionsaboutfinancialmarketandothereconomicconditions,whichmaychangebasedonchangesinkeyeconomicindicators.Themostsignificantyear-endassumptionsusedbytheCompanytoestimatepensionorotherpostretirementbenefitincomeorexpenseforthefollowingyeararethediscountrateappliedtoplanliabilitiesandtheexpectedlong-termrateofreturnonplanassets.Inaddition,theCompanyisrequiredtomakeanannualmeasurementofplanassetsandliabilities,whichmayresultinasignificantchargetostockholders’equity.SeePartIIItem7ofthisForm10-KinManagement’sDiscussionandAnalysisofFinancialConditionandResultsofOperationsundercaptionCriticalAccountingPoliciesandEstimates—PensionandOtherPostretirementBenefitsandPartIIItem8ofthisForm10-KinNoteOtotheConsolidatedFinancialStatements.AlthoughGAAPexpenseandpensionfundingcontributionsareimpactedbydifferentregulationsandrequirements,thekeyeconomicfactorsthataffectGAAPexpensewouldalsolikelyaffecttheamountofcashorsecuritieswewouldcontributetothepensionplans.

Potentialpensioncontributionsincludebothmandatoryamountsrequiredunderfederallawanddiscretionarycontributionstoimprovetheplans’fundedstatus.Higherthanexpectedpensioncontributionsduetoadeclineintheplans’fundedstatusasaresultofdeclinesinthediscountrateorlower-than-expectedinvestmentreturnsonplanassetscouldhaveamaterialnegativeeffectonourcashflows.Adversecapitalmarketconditionscouldresultinreductionsinthefairvalueofplanassetsandincreaseourliabilitiesrelatedtosuchplans,adverselyaffectingourliquidityandresultsofoperations.Item 1B. Unresolved Staff Comments.

None.

Item 2. Properties.

AlcoaCorporation’sprincipalexecutiveoffice,locatedat201IsabellaStreet,Suite500,Pittsburgh,Pennsylvania15212-5858,isleased.Alcoaalsoleasesseveralofficefacilitiesandsites,bothdomesticallyandinternationally.Inaddition,Alcoaownsorhasanownershipinterestinitsproductionsites,bothdomesticallyandinternationally.AlcoaownsactiveminesandplantsclassifiedundertheBauxite,Alumina,andAluminumsegmentsofitsbusiness.TheseincludefacilitiesandassetsaroundtheworldusedforAlcoa’sbauxitemining,aluminarefining,aluminumsmeltingandcastingproduction,energygeneration,andaluminumrollingoperations.Capacityandutilizationofthesefacilitiesvariesbysegmentandthelevelofdemandforeachproduct.SeePartIItem1ofthisForm10-Kforadditionalinformation,includingtheownership,capacityandutilizationofthesefacilitiesaccordingtoeachsegment.

Severalofourwholly-ownedproductionfacilitiesareencumberedundertheCompany’sRevolvingCreditFacility.SeePartIIItem7ofthisForm10-KinManagement’sDiscussionandAnalysisofFinancialConditionandResultsofOperationsundercaptionLiquidityandCapitalResources–FinancingActivitiesformoreinformationontheCompany’sRevolvingCreditFacility.

AlthoughAlcoa’sfacilitiesvaryintermsofa*geandcondition,managementbelievesthatit*facilitiesaresuitableandgenerallyadequatetosupportthecurrentandprojectedoperationsofthebusiness.SeePartIIItem8ofthisForm10-KinNotesBandKtotheConsolidatedFinancialStatementsformoreinformationonproperties,plantsandequipment.

Item 3. Legal Proceedings.

Intheordinarycourseofitsbusiness,Alcoaisinvolvedinanumberoflawsuitsandclaims,bothactualandpotential.Proceedingsthatwerepreviouslydisclosedmaynolongerbereportedbecause,asaresultofrulingsinthecase,settlements,changesinourbusinessorotherdevelopments,inourjudgment,theyarenolongermaterialtoAlcoa’sbusiness,financialpositionorresultsofoperations.SeePartIIItem8ofthisForm10-KinNoteStotheConsolidatedFinancialStatementsforadditionalinformation.

Inadditiontothemattersdiscussedbelow,variousotherlawsuits,claims,andproceedingshavebeenormaybeinstitutedorassertedagainstAlcoaCorporation,includingthosepertainingtoenvironmental,safetyandhealth,commercial,tax,productliability,intellectualpropertyinfringement,employment,employeeandretireebenefitmatters,andotheractionsandclaimsarisingoutofthenormalcourseofbusiness.Whiletheamountsclaimedintheseothermattersmaybesubstantial,theultimateliabilityisnotreadilydeterminablebecauseoftheconsiderableuncertaintiesthatexist.Accordingly,itispossiblethattheCompany’sliquidityorresultsofoperationsinaparticularperiodcouldbemateriallyaffectedbyoneormoreoftheseothermatters.However,basedonfactscurrentlyavailable,managementbelievesthatthedispositionoftheseothermattersthatarependingorassertedwillnothaveamaterialadverseeffect,individuallyorintheaggregate,onthefinancialpositionoftheCompany.

Environmental Matters

AlcoaisinvolvedinproceedingsunderCERCLAandanalogousstateorotherstatutoryorjurisdictionalprovisionsregardingtheusage,disposal,storageortreatmentofhazardoussubstancesatanumberofsites.TheCompanyhascommittedtoparticipate,orisengagedinnegotiationswithauthoritiesrelativetoitsallegedliabilityforparticipation,inclean-upeffortsatseveralsuchsites.ThemostsignificantofthesemattersarediscussedinPartIIItem8ofthisForm10-KinNoteStotheConsolidatedFinancialStatementsunderthecaptionContingencies.

InAugust2005,DanyLavoie,aresidentofBaieComeauintheCanadianProvinceofQuébec,filedaMotionforAuthorizationtoInstituteaClassActionandforDesignationofaClassRepresentativeagainstAlcoaCanadaLtd.,AlcoaLimitée,SociétéCanadiennedeMetauxReynoldsLimitéeandCanadianBritishAluminumintheSuperiorCourtofQuébecintheDistrictofBaieComeau,allegingthatdefendants,asthepresentandpastownersandoperatorsofanaluminumsmelterinBaieComeau,hadnegligentlyallowedtheemissionofcertaincontaminantsfromthesmelteronthelandsandhousesoftheSt.Georgesneighborhoodanditsenvironscausingpropertydamageandhealthconcerns.InMay2007,thecourtauthorizedaclassactionsuitonbehalfofallpeoplewhosufferedpropertyorpersonalinjurydamagescausedbytheemissionofpolycyclicaromatichydrocarbonsfromtheCompany’saluminumsmelterinBaieComeau.InSeptember2007,

plaintiffsfiledtheclaimagainsttheoriginaldefendants.TheSoderbergsmeltingoperationsthatplaintiffsallegetobethesourceofemissionsofconcernceasedoperationsin2013andhavebeendismantled.Acourtappointedexpert,engagedtoperformanalysisofthepotentialimpactsfromtheemissionsinaccordancewithasamplingprotocolagreedtobytheparties,submitteditsreporttothecourtinMay2019.Thepartiesarereviewingtheresultsofthereportwiththeirownexperts.Atthisstageoftheproceeding,weareunabletoreasonablypredictanoutcomeortoestimatearangeofreasonablypossibleloss.

Asbestos Litigation

Someofoursubsidiariesaspremisesownersaredefendantsinactivelawsuitsfiledonbehalfofpersonsalleginginjuryasaresultofoccupationalexposuretoasbestosatvariousfacilities.Aformeraffiliateofasubsidiaryhasbeennamed,alongwithalargecommongroupofindustrialcompanies,inapatterncomplaintwhereourinvolvementisnotevident.Since1999,severalthousandsuchcomplaintshavebeenfiled.Todate,theformeraffiliatehasbeendismissedfromalmosteverycasethatwasactuallyplacedinlinefortrial.Oursubsidiariesandacquiredcompaniesallhavehadnumerousinsurancepoliciesovertheyearsthatprovidecoverageforasbestosbasedclaims.Manyofthesepoliciesprovidelayersofcoverageforvaryingperiodsoftimeandforvaryinglocations.Wehavesignificantinsurancecoverageandbelievethatourreservesareadequateforknownasbestosexposurerelatedliabilities.Thecostsofdefenseandsettlementhavenotbeenandarenotexpectedtobematerialtotheresultsofoperations,cashflows,andfinancialpositionofAlcoaCorporation.

Item 4. Mine Safety Disclosures.

TheinformationconcerningminesafetyviolationsorotherregulatorymattersrequiredbySection1503(a)oftheDodd-FrankWallStreetReformandConsumerProtectionActandItem104ofRegulationS-K(17CFR229.104)isincludedinExhibit95.1ofthisreport,whichisincorporatedhereinbyreference.

PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

SharesoftheCompany’scommonstockarelistedontheNewYorkStockExchangeandtradeunderthesymbol“AA.”

AlcoaCorporationdidnotpaydividendsin2020,2019,or2018.DividendsonAlcoaCorporationcommonstockaresubjecttoauthorizationbytheCompany’sBoardofDirectors.Thepaymentandamountofdividends,ifany,dependsuponmattersdeemedrelevantbytheCompany’sBoardofDirectors,suchasAlcoaCorporation’sresultsofoperations,financialcondition,cashrequirements,futureprospects,anylimitationsimposedbylaw,creditagreementsorseniorsecurities,andotherfactorsdeemedrelevantandappropriate.TheCompany’sseniorsecuredrevolvingcreditfacilityandtheindenturegoverningcertainseniorunsecurednotesrestrictourabilitytopaydividendsincertaincirc*mstances.SeePartIIItem7ofthisForm10-KinManagement’sDiscussionandAnalysisofFinancialConditionandResultsofOperationsundercaptionLiquidityandCapitalResources–FinancingActivitiesformoreinformation.

AsofFebruary19,2021,therewereapproximately9,900holdersofrecordofsharesoftheCompany’scommonstock.BecausemanyofAlcoaCorporation’ssharesareheldbybrokersandotherinstitutionsonbehalfofstockholders,theCompanyisunabletoestimatethetotalnumberofstockholdersrepresentedbytheseholders.

Stock Performance Graph

ThefollowinggraphcomparesAlcoaCorporation’scumulative50-monthtotalshareholderreturnwiththecumulativetotalreturnsof(1)theStandard&Poor’s(S&P)500®Index,(2)theS&PMetals&MiningIndex,agroupofcompaniescategorizedbyS&Pasactiveinthe“MetalsandMining”industrywithinthe“Materials”marketsector(GICSLevel3Index),(3)theS&PMidCap400®Index,and(4)theS&PMetals&MiningSelectIndustryIndex.Thiscomparisonwasbasedonaninitialinvestmentof$100,includingthereinvestmentofanydividends,fromNovember1,2016(beginningof“regularway”tradingforAlcoaCorporation)throughDecember31,2020.Suchinformationshallnotbedeemedtobe“filed.”

Inourfuturestockperformancegraphs,beginningin2022,theS&PMidCap400IndexwillreplacetheS&P500IndexandtheS&PMetals&MiningSelectIndustryIndexwillreplacetheS&PMetals&MiningIndex.TheS&PMidCap400IndexwasselectedasacomparatorbecauseitscompaniesbetteralignwithAlcoa’smarketcapitalization.TheS&PMetals&MiningSelectIndustryIndexwasselectedasacomparatorbecauseitisabroaderindexwithmorecompaniesintheminingandmetalsindustry,includingthoseintheS&PMetals&MiningIndex,andismorerepresentativeoftheindustryinwhichtheCompanyoperates.

2016 2017 2018 2019 2020 1-Nov 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec Alcoa Corporation $ 100 $ 127 $ 244 $ 120 $ 97 $ 104S&P 500 100 106 130 124 163 193S&P MidCap 400 100 112 130 115 145 165S&P Metals & Mining 100 109 131 99 126 185S&P Metals & Mining Select Industry 100 120 145 107 123 143

Issuer Purchases of Equity Securities

Fourth Quarter 2020 Total Number of Shares

Purchased Weighted Average Price Paid

Per Share

Total Number of SharesPurchased as Part of Publicly

Announced Program

Approximate Dollar Valueof Shares that May Yet be

Purchased Under theProgram(1)

October1toOctober31 - $ - - $ 150,000,000 November1toNovember30 - - - 150,000,000 December1toDecember31 - - - 150,000,000 Total - - -

(1) OnOctober17,2018,AlcoaCorporationannouncedthatit*BoardofDirectorsauthorizedacommonstockrepurchaseprogramunderwhichtheCompanymaypurchasesharesofitsoutstandingcommonstockuptoanaggregatetransactionalvalueof$200,dependingoncashavailability,marketconditions,andotherfactors.Repurchasesundertheprogrammaybemadeusingavarietyofmethods,whichmayincludeopenmarketpurchases,privatelynegotiatedtransactions,orpursuanttoaRule10b5-1plan.Thisprogramdoesnothaveapredeterminedexpirationdate.AlcoaCorporationintendstoretiretherepurchasedsharesofcommonstock.

Item 6.Selected Financial Data.

(dollars in millions, except per-share amounts and average realized prices; metric tons in thousands (kmt))For the year ended December 31, 2020 2019 2018 2017 2016 Sales $ 9,286 $ 10,433 $ 13,403 $ 11,652 $ 9,318Restructuringandothercharges,net 104 1,031 527 309 318Net(loss)income(1) (14) (853) 893 608 (346)Net(loss)incomeattributabletoAlcoaCorporation(1) (170) (1,125) 250 279 (400)EarningspershareattributabletoAlcoaCorporationcommonshareholders(1):

Basic $ (0.91) $ (6.07) $ 1.34 $ 1.51 $ (2.19)Diluted (0.91) (6.07) 1.33 1.49 (2.19)

Shipmentsofalumina(kmt) 9,641 9,473 9,259 9,220 9,071Shipmentsofaluminumproducts(kmt) 3,016 2,859 3,268 3,356 3,147Averagerealizedpricepermetrictonofalumina $ 273 $ 343 $ 455 $ 340 $ 253Averagerealizedpricepermetrictonofprimaryaluminum 1,915 2,141 2,484 2,224 1,862Cashdividendsdeclaredpercommonshare(2) $ — $ — $ — $ — $ —Totalassets(1) 14,860 14,631 16,132 17,618 16,741Totaldebt 2,542 1,800 1,802 1,412 1,445Cashprovidedfrom(usedfor)operations 394 686 448 1,224 (311)Capitalexpenditures (353) (379) (399) (405) (404)(1) AsofJanuary1,2019,theCompanychangeditsmethodforvaluingcertainofitsinventoriesheldintheUnitedStatesandCanadatotheaveragecost

methodofaccountingfromtheLast-in-first-out(LIFO)method.TheeffectsofthechangeinaccountingprinciplefromLIFOtoaveragecosthavebeenretrospectivelyappliedto2018and2017(seebelowfor2016).

(2) DividendsoncommonstockaresubjecttoauthorizationbyAlcoaCorporation’sBoardofDirectors.AlcoaCorporationdidnotdeclareanydividendsfromitsformationonNovember1,2016throughDecember31,2020.

PriortotheSeparationDate,AlcoaCorporationdidnotoperateasaseparate,standaloneentity.AlcoaCorporation’soperationswereincludedinParentCo’sfinancialresults.Accordingly,forallperiodspriortotheSeparationDate,AlcoaCorporation’sConsolidatedFinancialStatementswerepreparedfromParentCo’shistoricalaccountingrecordsandwerepresentedonastandalonebasisasifAlcoaCorporation’soperationshadbeenconductedindependentlyfromParentCo.SuchConsolidatedFinancialStatementsincludethehistoricaloperationsthatwereconsideredtocompriseAlcoaCorporation’sbusinesses,aswellascertainassetsandliabilitiesthatwerehistoricallyheldatParentCo’scorporatelevelbutwerespecificallyidentifiableorotherwiseattributabletoAlcoaCorporation.The2019changeinaccountingmethodfromLIFOtoaveragecosthasnotbeenretrospectivelyappliedto2016duetotheimpracticabilityasaresultoftheSeparationTransaction.

ThedatapresentedintheSelectedFinancialDatatableshouldbereadinconjunctionwiththeinformationprovidedinPartIIItem7ofthisForm10-KinManagement’sDiscussionandAnalysisofFinancialConditionandResultsofOperationsandtheConsolidatedFinancialStatementsinPartIIItem8ofthisForm10-K.

Item 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations.

(dollars in millions, except per-share amounts, average realized prices, and average cost amounts;dry metric tons in millions (mdmt); metric tons in thousands (kmt))

Forward-Looking Statements

This report contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the PrivateSecurities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as “anticipates,” “believes,” “could,” “estimates,”“expects,” “forecasts,” “goal,” “intends,” “may,” “outlook,” “plans,” “projects,” “seeks,” “sees,” “should,” “targets,” “will,” “would,” or other words ofsimilar meaning. All statements by Alcoa Corporation that reflect expectations, assumptions or projections about the future, other than statements of historicalfact, are forward-looking statements, including, without limitation, forecasts concerning global demand growth for bauxite, alumina, and aluminum, andsupply/demand balances; statements, projections or forecasts of future or targeted financial results, or operating or sustainability performance; statements aboutstrategies, outlook, and business and financial prospects; and statements about return of capital. These statements reflect beliefs and assumptions that are basedon Alcoa Corporation’s perception of historical trends, current conditions, and expected future developments, as well as other factors that management believesare appropriate in the circ*mstances. Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks,uncertainties, and changes in circ*mstances that are difficult to predict. Although Alcoa Corporation believes that the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that these expectations will be attained and it is possible that actual results maydiffer materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Such risks and uncertainties include, but arenot limited to: (a) current and potential future impacts of the coronavirus (COVID-19) pandemic on the global economy and our business, financial condition,results of operations, or cash flows and judgments and assumptions used in our estimates; (b) material adverse changes in aluminum industry conditions, includingglobal supply and demand conditions and fluctuations in London Metal Exchange-based prices and premiums, as applicable, for primary aluminum and otherproducts, and fluctuations in indexed-based and spot prices for alumina; (c) deterioration in global economic and financial market conditions generally and whichmay also affect Alcoa Corporation’s ability to obtain credit or financing upon acceptable terms or at all; (d) unfavorable changes in the markets served by AlcoaCorporation; (e) the impact of changes in foreign currency exchange and tax rates on costs and results; (f) increases in energy or raw material costs oruncertainty of energy supply or raw materials; (g) declines in the discount rates used to measure pension and other postretirement benefit liabilities or lower-than-expected investment returns on pension assets, or unfavorable changes in laws or regulations that govern pension plan funding; (h) the inability to achieveimprovement in profitability and margins, cost savings, cash generation, revenue growth, fiscal discipline, sustainability targets, or strengthening ofcompetitiveness and operations anticipated from portfolio actions, operational and productivity improvements, technology advancements, and other initiatives; (i)the inability to realize expected benefits, in each case as planned and by targeted completion dates, from acquisitions, divestitures, restructuring activities, facilityclosures, curtailments, restarts, expansions, or joint ventures; (j) political, economic, trade, legal, public health and safety, and regulatory risks in the countries inwhich Alcoa Corporation operates or sells products; (k) labor disputes and/or and work stoppages; (l) the outcome of contingencies, including legal and taxproceedings, government or regulatory investigations, and environmental remediation; (m) the impact of cyberattacks and potential information technology ordata security breaches; and (n) the other risk factors discussed in Part I Item 1A of this Form 10-K and other reports filed by Alcoa Corporation with the U.S.Securities and Exchange Commission, including those described in this report.

Alcoa Corporation disclaims any obligation to update publicly any forward-looking statements, whether in response to new information, future events orotherwise, except as required by applicable law. Market projections are subject to the risks described above and other risks in the market.

Overview

Our Business

AlcoaCorporation(AlcoaortheCompany)isaverticallyintegratedaluminumcompanycomprisedofbauxitemining,aluminarefining,aluminumproduction(smelting,casting,androlling),andenergygeneration.AluminumisacommoditythatistradedontheLondonMetalExchange(LME)andpriceddaily.Additionally,aluminaissubjecttomarketpricingthroughtheAluminaPriceIndex(API),whichiscalculatedbytheCompanybasedontheweightedaverageofapriormonth’sdailyspotpricespublishedbythefollowingthreeindices:CRUMetallurgicalGradeAluminaPrice;PlattsMetalsDailyAluminaPAXPrice;andMetalBulletinNon-FerrousMetalsAluminaIndex.Asaresult,thepriceofbothaluminumandaluminaissubjecttosignificantvolatilityand,therefore,influencestheoperatingresultsofAlcoaCorporation.

Throughdirectandindirectownership,AlcoaCorporationhas28operatinglocationsinninecountriesaroundtheworld,situatedprimarilyinAustralia,Brazil,Canada,Iceland,Norway,Spain,andtheUnitedStates.Governmentalpolicies,lawsandregulations,andothereconomicfactors,includinginflationandfluctuationsinforeigncurrencyexchangeratesandinterestrates,affecttheresultsofoperationsinthesecountries.

Business Update

Coronavirus

Inresponsetotheongoingcoronavirus(COVID-19)pandemic,AlcoahasimplementedcomprehensivemeasureswhichremaininplacetoprotectthehealthoftheCompany’sworkforce,preventinfectioninourlocations,mitigateimpacts,andsafeguardbusinesscontinuity.Asaresultofthesemeasuresandthealuminumindustrybeingclassifiedasanessentialbusiness,allofAlcoa’sbauxitemines,aluminarefineries,andaluminummanufacturingfacilitiesremainedinoperationduring2020andcontinuetoremaininoperation.EachlocationhasimplementedextensivepreparednessandresponseplanswhichincludesocialdistancingprotocolsandotherprotectiveactionsalignedwithguidancefromtheU.S.CentersforDiseaseControlandPrevention,theWorldHealthOrganization,andallotherrelevantgovernmentagenciesincountrieswhereweoperate.Theseactionsremainineffectandinclude:

• Adjustedshiftschedulesandotherworkpatternstocreateseparationfortheworkforceandensureredundancyforcriticalresources; • Developedandimplementedadditionalhygieneprotocolsandcleaningroutinesateachlocation; • Deployedcommunicationstooursuppliers,vendors,customers,anddeliverypersonnelonourcomprehensiveactions,includinghealthandsafety

protocols; • Issuedglobalcommunicationstoeducateandupdateemployeesonpublichealthpracticestomitigatethepotentialspreadofthevirusinour

communities; • Implementedaccessrestrictions;everyonemustbefreeofthesignsandsymptomsofCOVID-19beforeenteringAlcoasites; • Implementedremoteworkprocedureswherepracticalormandatedbylaw;and, • Eliminatednon-essentialtravel.

During2020,theCOVID-19pandemicresultedincertainnegativeimpactsontheCompany’sbusiness,financialcondition,operatingresults,andcashflows.Forexample,therestartattheBécancour(Canada)smelterwasslowedattheendofthefirstquarterof2020butwassafelyandsuccessfullycompletedduringthethirdquarterof2020.Additionally,theCOVID-19pandemicnegativelyimpactedcustomerdemandforvalue-addaluminumproductsascustomersreducedproductionlevelsinresponsetotheeconomicimpactsofthepandemic.Thisresultedinlowermarginsonaluminumproductsassalesshiftedfromvalue-addproductstocommodity-gradeproducts,primarilyduringthesecondquarterof2020.However,duringthethirdandfourthquartersof2020,value-addsalesvolumeincreased11and13percent,respectively,onasequentialbasis,primarilyduetosoliddemandrecovery,particularlyintheautomotivesector.Alcoaexperiencedchallengesfromlowmetalpricesduringmid-2020;however,metalpricesincreasedandstabilizedinthesecondhalfof2020.TheCompanyhasnotexperiencedanysignificantinterruptionfromitssupplysources,andtheCompany’slocationshavehadminimalcontractor-andemployee-relateddisruptionstodate.

TheCompanycontinues,throughitsoperationsleadershipteamandglobalcrisisresponseteam,toensurethateachlocation’spreparednessandresponseplansareuptodate.TheCompanycouldexperiencenegativeimpactsifthereisanincreaseinCOVID-19cases.

AlcoaandAlcoaFoundationcontinuetosupportthecommunitiesnearouroperatinglocations,withspecialfocusonBraziliancommunitiesthathavebeenmoreadverselyaffectedbythepandemic.AlcoaFoundationhaspledgedmorethan$1tosupportCOVID-19reliefeffortsinthecommunitieswhereAlcoaoperatesthroughitshumanitarianaidprogram,whichisbeingusedtoprovideneededsupportsuchasmedicalsupplies,equipment,andfood.Thisisinadditiontothealmost$3theFoundationalreadycommittedtograntmakingincommunitieswhereweoperate.

AstheultimateimpactofCOVID-19ontheglobaleconomycontinuestoevolve,theCompanyisconstantlyevaluatingthebroadimpactofthepandemiconthemacroeconomicenvironment,includingspecificregionsandendmarketsinwhichtheCompanyoperates.Asaresultofthepandemic’simpactonthemacroeconomicenvironment,managementevaluatedthefuturerecoverabilityoftheCompany’sassets,includinggoodwillandlong-livedassets,andtherealizabilityofdeferredtaxassetswhileconsideringtheCompany’scurrentmarketcapitalization.ManagementconcludedthatnoassetimpairmentsandnoadditionalvaluationallowanceswererequiredduringtheyearendedDecember31,2020.

Thepandemiciscontinuing,andtheultimatemagnitudeanddurationoftheCOVID-19pandemicisunknown.Uncertaintyaroundtheglobalpublichealthcrisiscancauseinstabilityintheglobalmarketsandeconomies,affectingourbusiness.AlthoughweareunabletopredicttheultimateimpactoftheCOVID-19pandemiconourbusiness,financialcondition,andresultsofoperations,ifthisglobalhealththreatpersists,itcouldadverselyaffect:

regulationsand/orfewerworkersinthefacilitiesduetoillnessorpublichealthrestrictions;

• Commercialsustainabilityofkeyvendorsortransportationdisruptionswithinoursupplychain,whichcouldresultinhigherinventorycostsand/or

profitability; • Globalfinancialandcreditmarketsandourabilitytoobtainadditionalcreditorfinancinguponacceptabletermsoratall,whichcouldnegatively

affectourliquidityandfinancialcondition; • TheCompany’sabilitytomeetcovenantsinouroutstandingdebtandcreditfacilityagreements; • Investmentreturnonpensionassetsandinterestrates,andcontributiondeferrals,resultinginincreasedrequiredCompanycontributionsor

unfavorablecontributiontiming,negativelyimpactingfuturecashflows; • Alcoa’sabilitytogenerateincomeincertainjurisdictions,negativelyimpactingtherealizabilityofourdeferredtaxassets; • Therecoverabilityofcertainlong-livedandintangibleassets,includinggoodwill; • Thefinancialconditionofourinvestmentsandkeyjointventurepartners,negativelyimpactingtheresultsofoperations,cashflows,and

recoverabilityofinvestmentbalances; • Theeffectivenessofhedginginstruments; • Legalobligationsresultingfromemployeeclaimsrelatedtohealthandsafety;and • Ourabilitytoefficientlymanagecertaincorporatefunctionsandotheractivitiesasaresultofemployeesworkingremotely.

TheprecedinglistofpotentialadverseeffectsoftheCOVID-19pandemicisnotall-inclusiveornecessarilyinorderofimportanceormagnitude.Thepotentialimpact(s)ofthepandemicontheCompany’sbusiness,financialcondition,operatingresults,cashflowsand/ormarketcapitalizationisdifficulttopredictandwillcontinuetobemonitoredinsubsequentperiods.Furtheradverseconditionsorprolongeddeteriorationofconditionscouldnegativelyimpactourfinancialconditionandresultinassetimpairmentcharges,includinglong-livedassetsorgoodwill,oraffecttherealizabilityofdeferredtaxassets.

Inadditiontoutilizingallpreventativeandmitigationoptionsavailabletoensurecontinuityofoperations,theCompanyimplementedvariouscashpreservationinitiatives,withresultsasfollows:

• Reducednon-criticalcapitalexpendituresplannedfor2020by$122,inexcessofthe$100target; • Deferrednon-regulatedenvironmentalandassetretirementobligationspaymentsof$38,inexcessofthe$25target; • Initiallydeferredapproximately$200inpensioncontributionsunderprovisionsintheU.S.Government'sCoronavirusAid,Relief,andEconomic

Security(CARES)Act;withamplecashonhandandhavingachieveditsobjectivetoholdcashduringuncertaintimesin2020,theCompanymadea$250pensioncontributiontoitsU.S.pensionplansinlateDecembertocoverboththe$197deferredcontributionsdueonJanuary4,2021anda$53discretionaryprepayment;

• Deferredemployerpayrolltaxesofapproximately$14into2021and2022intheU.S.,alsoaspermittedundertheU.S.Government’sCARESAct;and,

• Implementedhiringrestrictionsoutsideofcriticalproductionroles,restrictedtravelthroughouttheorganization,andutilizedotherappropriategovernmentsupportprogramstosave$30,slightlyshortofthe$35target.

StrategicActions

Inlate2019,AlcoaCorporationannouncedstrategicactionstodrivelowercostsandsustainableprofitability:

• Theimplementationofanewoperatingmodelthatresultedinaleaner,moreintegrated,operator-centricorganizationwithreducedoverheadcosts; • Thepursuitofnon-coreassetsalesbyearly2021withthegoalofgenerating$500to$1,000innetproceedsinsupportofitsupdatedstrategic

priorities;and, • Therealignmentoftheoperatingportfoliooverthenextfiveyears,placing1.5millionmetrictonsofsmeltingcapacityand4millionmetrictonsof

aluminarefiningcapacityunderreview.Thereviewwillconsideropportunitiesforsignificantimprovement,potentialcurtailments,closures,ordivestitures.

Thenewoperatingmodelwasimplementedin2020.Inadditiontotheapproximately260employeesterminatedinconnectionwiththeimplementationofthenewoperatingmodel,60positionswereeliminatedasopenrolesorretirementswerenotreplaced.

InJanuary2020,theCompanyannouncedthesaleofElementalEnvironmentalSolutionsLLC(EES),awholly-ownedAlcoasubsidiarythatoperatedthewasteprocessingfacilityinGumSprings,Arkansas,toaglobalenvironmentalfirminatransactionvaluedat$250.ThetransactionclosedasofJanuary31,2020.Relatedtothistransaction,theCompanyreceived

$200incashandrecordedagainof$181(pre-andafter-tax).Further,anadditional$50isheldinescrowtobepaidtoAlcoaifcertainpost-closingconditionsaresatisfied,whichwouldresultinadditionalgainbeingrecorded.

OnNovember30,2020,theCompanyenteredintoanagreementtosellitsrollingmilllocatedatWarrickOperations(WarrickRollingMill),anintegratedaluminummanufacturingsitenearEvansville,Indiana(WarrickOperations),toKaiserAluminumCorporation(Kaiser)fortotalconsiderationofapproximately$670,whichincludes$587incashandtheassumptionof$83inotherpostretirementbenefitliabilities.Thesaleisexpectedtoclosebytheendofthefirstquarterof2021,subjecttocustomaryclosingconditions.Alcoawillretainownershipofthesite’s269kmtaluminumsmelteranditselectricitygeneratingunitsatWarrickOperationswithamarket-basedmetalsupplyagreementwithKaiser.Afterclosing,Alcoaexpectsannualdecreasesinsalesofapproximately$800andnetincome(pre-andafter-tax)of$45to$55,basedonlast12-monthpricingthroughDecember2020.Alcoaexpectstospendapproximately$100forsiteseparationandtransactioncosts,withapproximatelyhalfbeingspentin2021andtheremainderin2022and2023.

InOctober2020,theCompanymadethedecisiontocurtailthe228kmtofuncompetitiveannualsmeltingcapacityattheSanCipriánsmelterinSpain.Priortothisdecision,theCompanyhadcompletedafourmonthcollectivedismissalconsultationprocesswiththeworkers’representativeswhichfollowedaninformalprocesstodiscussthesignificantandunsustainablecirc*mstancesatthefacility.Theprocessincludedaformal30-dayconsultationperiodwiththeworkers’representativeswiththegoalofachievingthebestpossibleoutcomefortheCompanyanditsworkforce,andincludedproposalsbyAlcoatodiscussarestructuringplanforthealuminumfacilitytoendpersistentandrecurringfinanciallosses.Thealuminumfacilityincurred$56,$70,$58ofpre-andafter-taxlossesin2018,2019and2020,respectively.

Whileanagreementcouldnotbereachedwithintheinitialperiod,theworkers’representativesandtheCompanyagreedtoextendtheformalconsultationperiodtoevaluateapotentialsaleofthealuminumfacilitywithendorsem*ntfromtheSpanishnationalandregionalgovernments.Afteracomprehensivenegotiationprocess,thepotentialbuyerandAlcoadidnotagreeonterms.Subsequently,Alcoaandtheworkers’representativesmadeonemoreattempttoagreeuponasocialplanthatwouldincludegovernment-supportedunemploymentbenefits(ERTE)ortheimplementationofapermanentcollectivedismissal.Theworkers’representativesdeclinedtodiscussasocialplan,andAlcoaannounceditsdecisiontoinitiatecollectivedismissalandcurtailthesmelter.

FollowingAlcoa’sannouncement,theworkers’representativeschallengedthecollectivedismissalprocessinalegalproceedingbeforetheHighCourtofJusticeofGalicia,whichruledinfavoroftheworkersonDecember17,2020.Asaresult,theCompanysuspendeditsplanstocurtailtheSanCipriánsmelterandfiledanappealoftherulingwiththeSpanishSupremeCourtastheCompanycontinuestobelieveithasactedingoodfaithandinfullcompliancewiththelaw.Additionally,inthefourthquarterof2020,theCompanydidnotincurtheapproximately$35to$40itpreviouslyannouncedasanexpectedchargeforemployeerelatedcostsassociatedwiththecurtailmentandcollectivedismissalprocess.

AlthoughtheSanCipriánaluminarefinerywasnotincludedintheformalconsultationprocess,onOctober4,2020,thelaborforceatboththerefineryandthealuminumfacilitiesinitiatedastrikewhichhasreducedrefineryproductionandmetalshipments.OnJanuary22,2021,theCompanyandtheworkers’representativesreachedanagreementtosuspendthestrike.Aspartoftheagreement,theCompanyagreedtoconductasaleprocesswithSociedadEstataldeParticipacionesIndustriales(SEPI),aSpanishgovernmentownedentity,whichexpressedinterestinacquiringthesmelterfacility.Alcoaexpectstoincuradditionalchargesin2021ifanagreementisreachedonthesaleofthesmelter.

InApril2020,Alcoaannouncedthecurtailmentoftheremaining230kmtofuncompetitivesmeltingcapacityatit*IntalcosmelterinFerndale,Washingtonamiddecliningmarketconditions.Thefullcurtailmentof279kmt,whichincluded49kmtofearlier-curtailedcapacity,wascompletedduringthethirdquarterof2020.During2020,theCompanyrecordedRestructuringandothercharges,netof$28(seePartIIItem8ofthisForm10-KinNoteDtotheConsolidatedFinancialStatements)foremployee-relatedcostsandcontractterminationcosts,whichwereallcash-basedcharges.AtDecember31,2020,theseparationofemployeesandrelatedseveranceandemployeeterminationcostpaymentsassociatedwiththisprogramwereessentiallycomplete.

InDecember2019,theCompanyannouncedthepermanentclosureofitsaluminarefineryinPointComfort,Texasasitsfirstactionofthemulti-yearportfolioreview.Thesite’s2.3millionmetrictonsofrefiningcapacityhadbeenfullycurtailedsince2016.Asaresultofthedecisiontoclosetherefinery,a$274chargewasrecordedtoRestructuringandothercharges,netduring2019(seePartIIItem8ofthisForm10-KinNoteDtotheConsolidatedFinancialStatements).

2020Programs

Earlyin2020,Alcoaannouncedprogramstodriveleanerworkingcapitalandimprovedproductivity.During2020,theCompanymetthecombined$175to$200fullyearworkingcapitalreductionandproductivitysavingstargetwith$111inworkingcapitaland$73inproductivitycostsavings.Thisachievementwouldhavebeen$82higherwithouttheimpactoftheworkers’strikeatSanCipriánwhichincreasedyear-endinventorybalancesatthefacility.

LiquidityLevers

In2020,Alcoaexceededits$900targetincashactionsthroughacombinationoftheCOVID-19responseinitiatives,strategicactions,and2020programsdiscussedabove.

Inadditiontothecashactionsprograms,throughout2020,managementtookseveralmeasurestoimproveandmaintainAlcoa’sliquiditylevers.TheseincludedamendingtheCompany’sRevolvingCreditFacility(seeLiquidityandCapitalResourcesbelow)totemporarilyprovideamorefavorableleverageratiocalculationthroughApril1,2021,permanentlyadjustingthecalculationofConsolidatedEBITDA(asdefinedintheRevolvingCreditFacility),andtemporarilyadjustingthemannerinwhichConsolidatedCashInterestExpenseandTotalIndebtednessarecalculated.AsofDecember31,2020,thesetemporaryadjustmentstothecalculationsofConsolidatedCashInterestExpenseandTotalIndebtednessapplythroughMarch31,2021andANHBVmay,atit*option,extendtheseadjustmentsthroughJune30,2021.Duringthesecondquarterof2020,theCompanyalsoamendedathree-yearrevolvingcreditfacilityagreementofoneofitswholly-ownedsubsidiariessecuredbycertaincustomerreceivables,convertingittoaReceivablesPurchaseAgreementthatprovidestheoptionforfasterliquidationofcertaincustomerreceivables.

OnApril8,2020,theCompany’swholly-ownedsubsidiary,AlcoaNorwayANS,drew$100againstit*one-year,multicurrencyrevolvingcreditfacility,andmaydosofromtimetotimeinthefuture,intheordinarycourseofbusiness.Repaymentofthedrawnamount,includinginterestaccruedat2.93%,occurreduponmaturityonJune29,2020.OnJuly3,2020,AlcoaNorwayANSamendedtherevolvingcreditfacilityagreementtoalignthetermsoftheagreementwiththeamendmentstotheRevolvingCreditFacility(discussedabove).OnSeptember30,2020,AlcoaNorwayANSenteredintoanAmendmentandRestatementAgreement(theA&RAgreement)tothemulticurrencyrevolvingcreditfacilityagreement.TheA&RAgreementextendedthematurityoneyearfromtheoriginalmaturitydatetoOctober2,2021,unlessfurtherextendedorterminatedearlyinaccordancewiththeprovisionsoftheA&RAgreement.TheA&RAgreementalsoamendedcertainfinancialratiocovenants,specifyingcalculationsbasedupontheresultsofAlcoaNorwayANSratherthanthecalculationsoutlinedintheRevolvingCreditFacility.

InJuly2020,AlcoaNederlandHoldingB.V.(ANHBV),awholly-ownedsubsidiaryofAlcoaCorporation,issued$750aggregateprincipalamountof5.500%SeniorNotesdue2027(the2027Notes)inaprivatetransactionexemptfromtheregistrationrequirementsoftheSecuritiesActof1933,asamended(theSecuritiesAct).Thenetproceedsofthisissuancewereapproximately$736reflectingadiscounttotheinitialpurchasersofthe2027Notesaswellasissuancecosts.

SeeCreditFacilitiesundertheLiquidityandCapitalResourcessectionofManagement’sDiscussionandAnalysisforadditionaldetailsontheabovedescribedliquiditymeasures.

Section232Tariffs

InAugust2020,theU.S.governmentreinstated10percenttariffsoncertainaluminumimportsfromCanadaunderSection232oftheTradeExpansionActof1962(Section232).InSeptember2020,theU.S.governmentannouncedthatitwouldnotimposethistarifffromSeptember2020toDecember2020iftotalaluminumimportsofnon-alloyed,unwroughtaluminumfromCanadametcertainconditions.InOctober2020,theU.S.governmentfullyreinstatedtheexemptiononaluminumimportsfromCanadaretroactivetoSeptember1,2020.TheCompanyrecordednetexpenseof$3relatedtoSection232tariffsin2020.(SeeAluminumunderSegmentInformationbelow).

Separation Transaction

Referencesto“ParentCo”refertoAlcoaInc.,aPennsylvaniacorporation,anditsconsolidatedsubsidiariesthroughOctober31,2016,atwhichtimeitwasrenamedArconicInc.(Arconic)andsincehasbeensubsequentlyrenamedHowmetAerospaceInc.

OnNovember1,2016(theSeparationDate),ParentCoseparatedintotwostandalone,publicly-tradedcompanies,AlcoaCorporationandParentCo,effectiveat12:01a.m.EasternTime(theSeparationTransaction).Regular-waytradingofAlcoaCorporation’scommonstockbeganwiththeopeningoftheNewYorkStockExchangeonNovember1,2016underthetickersymbol“AA.”TheCompany’scommonstockhasaparvalueof$0.01pershare.

InconnectionwiththeSeparationTransaction,AlcoaCorporationandParentCoenteredintocertainagreementstoimplementthelegalandstructuralseparationbetweenthetwocompanies,governtherelationshipbetweentheCompanyandParentCoafterthecompletionoftheSeparationTransaction,andallocatebetweenAlcoaCorporationandParentCovariousassets,liabilities,andobligations.TheseagreementsincludedaSeparationandDistributionAgreement,TaxMattersAgreement,EmployeeMattersAgreement,TransitionServicesAgreement,certainPatent,Know-How,TradeSecretLicenseandTrademarkLicenseAgreements,andStockholderandRegistrationRightsAgreement.

amountsofassetsandliabilitiesandthedisclosureofcontingentassetsandliabilitiesatthedateofthefinancialstatements.Theyalsomayaffectthereportedamountsofrevenuesandexpensesduringthereportingperiods.Actualresultscoulddifferfromthoseestimatesuponsubsequentresolutionofidentifiedmatters.Certainamountsinpreviouslyissuedfinancialstatementswerereclassifiedtoconformtothecurrentperiodpresentation.

ThediscussionthatfollowsincludesacomparisonofourresultsofoperationsandliquidityandcapitalresourcesforthefiscalyearsendedDecember31,2020and2019.ForadiscussionofchangesfromthefiscalyearendedDecember31,2018tothefiscalyearendedDecember31,2019,refertoManagement’sDiscussionandAnalysisofFinancialConditionandResultsofOperationinPartIIItem7ofAlcoaCorporation’sAnnualReportonForm10-KfortheyearendedDecember31,2019(filedFebruary21,2020).

Results of Operations

Earnings Summary

NetlossattributabletoAlcoaCorporationfor2020was$170comparedwith$1,125in2019.Thefavorablechangeof$955wasprimarilyduetolowerrestructuringcosts,favorableforeigncurrencymovements,alowerincometaxprovision,favorableimpactsfromportfolioactions,andlowernetincomeattributabletononcontrollinginterest,partiallyoffsetbylowermarginfromdecliningaluminaandaluminumprices.

Sales—Salesfor2020were$9,286comparedwith$10,433in2019,achangeof$1,147,or11%.Thedecreasewaslargelyattributedtoaloweraveragerealizedpriceforaluminaandaluminum,reducedsalesfromtheJuly2019divestitureoftwoaluminumfacilitiesinSpainandthecurtailmentoftheIntalco(Washington)smelterwhichcompletedinthesecondhalfof2020,partiallyoffsetbyhighersalesresultingfromtherestartoftheBécancour(Canada)smelterwhichcompletedinthesecondhalfof2020.

Cost of Goods Sold—CostofgoodssoldasapercentageofSaleswas86%in2020comparedwith82%in2019.Thepercentagewasnegativelyimpactedbyaloweraveragerealizedpriceforbothaluminaandaluminumproducts.Theunfavorableimpactswerepartiallyoffsetbylowerrawmaterialcosts,netfavorableforeigncurrencymovementsduetoastrongerU.S.dollar,primarilyagainsttheAustraliandollar,theeuro,andtheBrazilianreal,improvementsduetotheJuly2020divestitureoftwoaluminumfacilitiesinSpain,thecurtailmentoftheIntalco(Washington)smelterwhichcompletedinthesecondhalfof2020,therestartoftheBécancour(Canada)smelterwhichcompletedinthesecondhalfof2020,andtheabsenceofunfavorableimpactsfromthetariffsoncertainaluminumimportsin2019(seeAluminuminSegmentInformationbelow).

Selling, General Administrative, and Other Expenses—Selling,generaladministrative,andotherexpenseswere$206,or2%ofSales,in2020comparedwith$280,or3%ofSales,in2019.Thefavorablechangeof$74wasprimarilyrelatedtocostsavingsfromtheCompany’sstrategicactionsandCOVID-19responseinitiatives,lowerfeesforprofessionalservices,andthenonrecurrenceofabaddebtreserverecordedagainstaCanadiancustomerreceivableduetoa2019bankruptcyfiling.

Provision for Depreciation, Depletion, and Amortization—TheprovisionforDD&Awas$653in2020comparedwith$713in2019.Thedecreaseof$60,or8%,wasprincipallycausedbyfavorableforeigncurrencymovementsfromtheBrazilianrealandtheCanadiandollar,andthenonrecurrenceofwriteoffsofassetsin2019forprojectsnolongerbeingpursued.

Restructuring and Other Charges, Net—Restructuringandothercharges,netwas$104in2020comparedwith$1,031in2019.In2020,managementexecutedseveralactionsthatimpactedRestructuringandothercharges,net.Theseincluded$59relatedtosettlementsandcurtailmentsofcertainpensionandotherpostretirementbenefits,$28(net)forcostsrelatedtothecurtailmentoftheIntalco(Washington)smelter,and$20foradditionalcontractcostsrelatedtothecurtailedWenatchee(Washington)smelter.

In2019,managementtookseveralactionstostrengthentheCompanywhichtotaled$1,031inRestructuringandothercharges,net.Theseactionsincluded$319todivestAlcoa’sequityinvestmentinMa’adenRollingCompany,$274relatedtothedecisiontopermanentlyclosethePointComfortaluminarefinery,$235tocurtailandsubsequentlydivesttheAvilésandLaCoruña(Spain)aluminumfacilities,$119inadditionalactionstakentoreducetheoverallpensionandotherpostretirementbenefit(OPEB)liabilities,and$37associatedwiththenewoperatingmodelthatstreamlinedreportingtoassistinoperationaleffectiveness.SeePartIIItem8ofthisForm10-KinNoteDtotheConsolidatedFinancialStatementsforadetaileddescriptionofeachrestructuringaction.

Other Expenses, net—Otherexpenses,netwas$8in2020comparedwith$162in2019.Thechangeof$154wasprimarilyduetoagainonthedivestitureofawasteprocessingfacilityinGumSprings,Arkansaswhichwaspartiallyoffsetbylossesrelatedtomark-to-marketderivativeinstruments.

Income Taxes—AlcoaCorporation’seffectivetaxratewas108.1%in2020comparedwiththeU.S.federalstatutoryrateof21%.Alcoa’seffectivetaxrateandfederalstatutoryratefor2019were(94.9)%(provisiononloss)and21%,respectively.TheeffectivetaxratediffersfromtheU.S.federalstatutoryrateprimarilyduetolossesincountrieswithfullvaluationreservesresultinginnotaxbenefit,aswellasforeignincometaxedinhigherratejurisdictions.In2019,theeffectivetaxratewasalsoimpactedbyrestructuringexpensesrelatedtodivestituresinforeignjurisdictionsthatarenotdeductiblefortaxpurposes.

Inadditiontoreviewingtheeffectivetaxrate,managementutilizesanadjustedeffectivetaxrate(theoperationaltaxrate)toassessthetaxonoperationsexclusiveofspecialitems.ManagementreviewstheoperatingresultsoftheCompanyexclusiveofspecialitems,andthereforebelievesthatthismeasureismeaningfulforassessingtheimpactofthesespecialitemsontheeffectivetaxrate.Beginninginthefirstquarterof2021,theCompanywillrevisethewayouroperationaltaxprovisioniscalculatedonaninterimbasis.TheoperationaltaxprovisionwillbegintoincludetheinterimtaximpactsrequiredunderGAAPthathavepreviouslybeenexcludedfromouroperationaltaxprovisioncalculation.Inperiodsofvolatilitywhenprofitbeforetaxbyjurisdictionmovesconsiderablybetweenperiods,inclusionoftheGAAPinterimtaximpactscanreducethefluctuationsintheinterimoperationaltaxprovision.Thischangewillhavenoimpactonourfullyearforecastedoperationaltaxprovisionandwillbeusedinallfutureperiods.ThechangewillalsohavenoimpactontheGAAPtaxprovisioninanyperiod.

Insummary,for2021andfutureperiods,thecalculationoftheCompany’soperationaltaxiscalculatedonafullyearbasisinamannerconsistentwithourGAAPtaxprovisionexceptforexclusionofthefollowingitems:

• Taxcostorbenefitattributabletospecialitemsbasedontheapplicablestatutoryratesinthejurisdictionswherethespecialitemsoccurred;and • Discretetaxitems(generallyunusualorinfrequentlyoccurringitems,changesinlaw,itemsassociatedwithuncertaintaxpositions,oreffectsof

measurement-periodadjustments).Noncontrolling Interest—Netincomeattributabletononcontrollinginterestwas$156in2020comparedwith$272in2019.TheseamountsareentirelyrelatedtoAluminaLimited’s40%ownershipinterestinseveralaffiliatedoperatingentities,whichown,haveaninterestin,oroperatethebauxiteminesandaluminarefinerieswithinAlcoa’sBauxiteandAluminasegments(exceptforthePoçosdeCaldasmineandrefineryandportionsoftheSãoLuísrefineryandinvestmentinMineraçãoRiodoNorteS.A.,allinBrazil)andaportion(55%)ofthePortlandsmelter(Australia)withintheCompany’sAluminumsegment.TheseindividualentitiescompriseanunincorporatedglobaljointventurebetweenAlcoaCorporationandAluminaLimitedknownasAlcoaWorldAluminaandChemicals(AWAC).AlcoaCorporationowns60%oftheseindividualentities,whichareconsolidatedbytheCompanyforfinancialreportingpurposesandincludeAlcoaofAustraliaLtd.(AofA),AlcoaWorldAluminaLLC(AWA),AlcoaWorldAluminaBrasilLtda.(AWAB),andAlúminaEspañola,S.A.(Española).AluminaLimited’s40%interestintheearningsofsuchentitiesisreflectedasNoncontrollinginterestonAlcoaCorporation’sStatementofConsolidatedOperations.

In2020,thesecombinedentitiesgeneratedlowernetincomecomparedto2019,primarilydrivenbyloweraluminapriceswhichwerepartiallyoffsetbyfavorableforeigncurrencymovements.

Segment Information

AlcoaCorporationisaproducerofbauxite,alumina,andaluminumproducts(primaryandflat-rolled).TheCompany’soperationsconsistofthreeworldwidereportablesegments:Bauxite,Alumina,andAluminum.SegmentperformanceunderAlcoaCorporation’smanagementreportingsystemisevaluatedbasedonanumberoffactors;however,theprimarymeasureofperformanceistheAdjustedEBITDA(Earningsbeforeinterest,taxes,depreciation,andamortization)ofeachsegment.TheCompanycalculatesSegmentAdjustedEBITDAasTotalsales(third-partyandintersegment)minusthefollowingitems:Costofgoodssold;Selling,generaladministrative,andotherexpenses;andResearchanddevelopmentexpenses.AlcoaCorporation’sAdjustedEBITDAmaynotbecomparabletosimilarlytitledmeasuresofothercompanies.

SegmentAdjustedEBITDAtotaled$1,317in2020,$1,626in2019,and$3,250in2018.Thefollowinginformationprovidesproduction,shipments,sales,andSegmentAdjustedEBITDAdataforeachreportablesegment,aswellascertainrealizedpriceandaveragecostdata,foreachofthethreeyearsintheperiodendedDecember31,2020.SeePartIIItem8ofthisForm10-KinNoteEtotheConsolidatedFinancialStatementsforadditionalinformation.

Bauxite

2020 2019 2018 Production(mdmt) 48.0 47.4 45.8Third-partyshipments(mdmt) 6.5 6.2 5.7Intersegmentshipments(mdmt) 42.2 41.4 41.2Totalshipments(mdmt) 48.7 47.6 46.9Third-partysales $ 272 $ 297 $ 271Intersegmentsales 941 979 944Totalsales $ 1,213 $ 1,276 $ 1,215SegmentAdjustedEBITDA $ 495 $ 504 $ 426Operatingcosts $ 835 $ 859 $ 869Averagecostperdrymetrictonofbauxiteshipped $ 17 $ 18 $ 19

Operatingcostsinthetableaboveincludesallproduction-relatedcosts:conversioncosts,suchaslabor,materials,andutilities;depreciation,depletion,andamortization;andplantadministrativeexpenses.

Overview. ThissegmentrepresentstheCompany’sglobalbauxiteminingoperations.Aportionofthissegment’sproductionrepresentstheofftakefromequitymethodinvestmentsinBrazilandGuinea,aswellasAWAC’sshareofproductionrelatedtotheequityinvestmentinSaudiArabia.ProductionintheabovetablecanvaryfromTotalshipmentsdueprimarilytodifferencesbetweentheequityallocationofproductionandoff-takeagreementswiththerespectiveequityinvestment.ThebauxiteminedbythissegmentissoldprimarilytointernalcustomerswithintheAluminasegment;aportionofthebauxiteissoldtoexternalcustomers.BauxiteminedbythissegmentandusedinternallyistransferredtotheAluminasegmentatnegotiatedtermsthatareintendedtoapproximatemarketprices;salestothird-partiesareconductedonacontractbasis.Generally,thissegment’ssalesaretransactedinU.S.dollarswhilecostsandexpensesaretransactedinthelocalcurrencyoftherespectiveoperations,whicharetheAustraliandollarandtheBrazilianreal.MostoftheoperationsthatcomprisetheBauxitesegmentarepartofAWAC(seeNoncontrollingInterestinEarningsSummaryabove).

Business Update. TheBauxitesegmenthadrecordannualproductionin2020whichincludedannualproductionrecordsfortheWillowdale(Australia)andJuruti(Brazil)mines.TherecordannualproductionistheresultofstableminingconditionsandincreasedfocusonoperatingefficienciesaspartoftheCompany’s2020strategicinitiatives.

Miningoperationsarerelocatedperiodicallyinsupportofoptimizingthevalueextractedfrombauxitereserves.During2019,theCompanybegantheprocessofmovingtheWillowdaleminingoperationstothenextplannedlocationintheDarlingrangeandbeganpreparingformovementoftheJurutiminingoperationswhichbeganin2020.During2020,theCompanyincurred$82and$1incapitalexpendituresrelatedtotheWillowdaleandJurutiminingoperationrelocations,respectively.Asaresultofthesemovements,approximately$37and$16ofadditionalcapitalexpendituresrelatedtoWillowdaleandJuruti,respectively,areanticipatedfor2021.TherelocationoftheWillowdaleminingoperationsisexpectedtobecompletedduringthefirstquarterof2021andtherelocationoftheJurutiminingoperationsisexpectedtobecompletedduringthefirstquarterof2022.

Production. In2020,bauxiteproductionincreased1%comparedwith2019,fromhigherproductionatfourofthesegment’ssevenmines.

Sales. Third-partysalesfortheBauxitesegmentdecreased8%in2020comparedwith2019dueprimarilytoaloweraveragerealizedprice.Thepricedecreasewaspartiallyoffsetbya5%increaseinThird-partyshipmentsin2020,comparedwith2019.

IntersegmentsalesfortheBauxitesegmentdecreased4%in2020comparedwith2019dueprimarilytoaloweraveragerealizedprice.Thepricedecreasewaspartiallyoffsetbya2%increaseinintersegmentshipmentsin2020,comparedwith2019.

Segment Adjusted EBITDA. BauxiteSegmentAdjustedEBITDAdecreased$9in2020comparedwith2019,principallyasaresultofthepreviouslymentionedloweraveragerealizedpriceforthird-partyandintersegmentsalespartiallyoffsetbynetfavorableforeigncurrencymovementsduetoastrongerU.S.dollaragainsttheBrazilianreal.

Forward-Look. In2021,lowerintersegmentandthird-partypricesareanticipatedalongwithadditionalcapitalexpendituresrelatedtothepreviouslymentionedWillowdaleandJurutimininglocationmoves.ThelowerintersegmentbauxitepricewillprovideacorrespondingbenefittotheAluminasegmentasdiscussedbelow.TheCompanyprojectstotalbauxiteshipmentstorangebetween49.0and50.0milliondrymetrictons,animprovementfrom2020.

Alumina

2020 2019 2018 Production(kmt) 13,475 13,302 12,857Third-partyshipments(kmt) 9,641 9,473 9,259Intersegmentshipments(kmt) 4,243 4,072 4,326Totalshipments(kmt) 13,884 13,545 13,585Third-partysales $ 2,627 $ 3,250 $ 4,215Intersegmentsales 1,268 1,561 2,101Totalsales $ 3,895 $ 4,811 $ 6,316SegmentAdjustedEBITDA $ 497 $ 1,097 $ 2,373Averagerealizedthird-partypricepermetrictonofalumina $ 273 $ 343 $ 455Operatingcosts $ 3,379 $ 3,646 $ 3,892Averagecostpermetrictonofaluminashipped $ 243 $ 269 $ 286

Intheabovetable,totalshipmentsincludemetrictonsthatwerenotproducedbytheAluminasegment.Suchaluminawaspurchasedtosatisfycertaincustomercommitmentsorrequirements.TheAluminasegmentbearstheriskoflossofthepurchasedaluminauntilcontroloftheproducthasbeentransferredtothissegment’scustomer.Additionally,operatingcostsinthetableaboveincludesallproduction-relatedcosts:rawmaterialsconsumed;conversioncosts,suchaslabor,materials,andutilities;depreciationandamortization;andplantadministrativeexpenses.

Overview. ThissegmentrepresentstheCompany’sworldwiderefiningsystem,whichprocessesbauxiteintoalumina.Thealuminaproducedbythissegmentissoldprimarilytointernalandexternalaluminumsmeltercustomers;aportionofthealuminaissoldtoexternalcustomerswhoprocessitintoindustrialchemicalproducts.Approximatelytwo-thirdsofAlumina’sproductionissoldundersupplycontractstothirdpartiesworldwide,whiletheremainderisusedinternallybytheAluminumsegment.AluminaproducedbythissegmentandusedinternallyistransferredtotheAluminumsegmentatprevailingmarketprices.Aportionofthissegment’sthird-partysalesarecompletedthroughtheuseofaluminatraders.Generally,thissegment’ssalesaretransactedinU.S.dollarswhilecostsandexpensesaretransactedinthelocalcurrencyoftherespectiveoperations,whicharetheAustraliandollar,theBrazilianreal,theU.S.dollar,andtheeuro.MostoftheoperationsthatcomprisetheAluminasegmentarepartofAWAC(seeNoncontrollingInterestinEarningsSummaryabove).ThissegmentalsoincludesAWAC’s25.1%ownershipinterestintheminingandrefiningjointventurecompanyinSaudiArabia.

Business Update. TheAluminasegmenthadrecordannualproductionin2020,whichincludedannualproductionrecordsfortheWagerup,Pinjarra,andKwinana(Australia)aluminarefineriesandtheSãoLuís(Brazil)aluminarefinery,asoperatingefficienciesweregainedacrosstherefiningsystem.

During2020,theaverageAPI(on30-daylag)reachedalowinMay2020andtrendedfavorablythroughouttheremainderoftheyear.TheAluminasegmentgainedefficienciesacrosstherefiningsystemwithadditionaloperationsfocusandsupport,acriticalcomponentoftheCompany’snewoperatingmodelandrealizedthebenefitofdecliningpricesforcausticsodaandlowerpricesforbauxite.

OnOctober4,2020,thelaborforceatboththerefineryandthealuminumfacilitiesatSanCiprián(Spain)initiatedastrikewhichreducedrefineryproductionandmetalshipments.OnJanuary22,2021,theCompanyandtheworkers’representativesreachedanagreementtosuspendthestrike.TheCompanydoesnotexpecttheimpactofthestriketohaveamaterialimpactonAluminaSegmentAdjustedEBITDAin2021.

Capacity. AtDecember31,2020,theAluminasegmenthadabasecapacityof12,759kmtwith214kmtofcurtailedrefiningcapacity.Therewerenochangestocurtailedorbasecapacityduring2020.

Production. In2020,aluminaproductionincreasedby173kmtcomparedwith2019,principallyduetooperatingefficienciesgainedacrosstherefiningsystem.The2020annualproductionrecordexceededthepreviousannualrecordsetin2019.

Sales. Third-partysalesfortheAluminasegmentdecreased19%in2020comparedwith2019,primarilyattributabletoadeclineinaveragerealizedpricewhichwasprincipallydrivenbyaloweraverageAPI(on30-daylag).Thepricedecreasewaspartiallyoffsetbya2%increaseinThird-partyshipmentsin2020,comparedwith2019.

IntersegmentsalesfortheAluminasegmentdecreased19%in2020comparedwith2019primarilyduetoaloweraveragerealizedprice,partiallyoffsetbyincreaseddemandfromtheAluminumsegment.TheincreaseddemandfromtheAluminumsegmentwasprimarilydrivenbytherestartattheBécancour(Canada)smelterpartiallyoffsetbythecurtailmentoftheIntalcosmelter(seeAluminumbelow).

Segment Adjusted EBITDA.AluminaSegmentAdjustedEBITDAdecreased$600in2020comparedwith2019,largelyattributedtothedeclineinaveragerealizedpriceofaluminaandhigherenergycostsinAustralia.Thesenegativeimpactswerepartiallyoffsetbylowercostsforbauxiteandcausticsoda,increasedtotalshipmentsandnetfavorableforeigncurrencymovementsduetoastrongerU.S.dollar(particularlyagainsttheAustraliandollarandBrazilianreal).

Forward-Look. In2021,thelowerintersegmentbauxitepricewillbenefittheAluminasegmentwhilehighernaturalgascostsinAustraliaareexpectedtobemorethanoffsetbylowercostsforbothbauxiteandcausticsoda.TheCompanyprojectstotalaluminashipmentstorangebetween13.9and14.0millionmetrictons,stableincomparisonto2020.

AluminumTotal Aluminum information 2020 2019 2018 Third-partyaluminumshipments(kmt) 3,016 2,859 3,268Third-partysales $ 6,365 $ 6,803 $ 8,829Intersegmentsales 12 17 18Totalsales $ 6,377 $ 6,820 $ 8,847SegmentAdjustedEBITDA $ 325 $ 25 $ 451 Primary aluminum information 2020 2019 2018 Production(kmt) 2,263 2,135 2,259Third-partyshipments(kmt) 2,710 2,535 2,732Third-partysales $ 5,190 $ 5,426 $ 6,787Averagerealizedthird-partypricepermetricton $ 1,915 $ 2,141 $ 2,484Totalshipments(kmt) 2,773 2,597 2,844Operatingcosts $ 5,222 $ 5,847 $ 6,974Averagecostpermetrictonofprimaryaluminumshipped $ 1,883 $ 2,251 $ 2,452

Intheabovetable,totalaluminumthird-partyshipmentsandtotalprimaryaluminumshipmentsincludemetrictonsthatwerenotproducedbytheAluminumsegment.Suchaluminumwaspurchasedbythissegmenttosatisfycertaincustomercommitmentsorrequirements.TheAluminumsegmentbearstheriskoflossofthepurchasedaluminumuntilcontroloftheproducthasbeentransferredtothissegment’scustomer.Totalaluminuminformationincludesflat-rolledaluminumwhilePrimaryaluminuminformationdoesnot.Operatingcostsincludesallproduction-relatedcosts:rawmaterialsconsumed;conversioncosts,suchaslabor,materials,andutilities;depreciationandamortization;andplantadministrativeexpenses.

Theaveragerealizedthird-partypricepermetrictonofprimaryaluminumincludesthreeelements:a)theunderlyingbasemetalcomponent,basedonquotedpricesfromtheLME;b)theregionalpremium,whichrepresentstheincrementalpriceoverthebaseLMEcomponentthatisassociatedwiththephysicaldeliveryofmetaltoaparticularregion(e.g.,theMidwestpremiumformetalsoldintheUnitedStates);andc)theproductpremium,whichrepresentstheincrementalpriceforreceivingphysicalmetalinaparticularshape(e.g.,billet,slab,rod,etc.)oralloy.

Overview. ThissegmentconsistsoftheCompany’s(i)worldwidesmeltingandcasthousesystem,whichprocessesaluminaintoprimaryaluminum,(ii)portfolioofenergyassetsinBrazil,Canada,andtheUnitedStates,and(iii)arollingmillintheUnitedStates.

Aluminum’scombinedsmeltingandcastingoperationsproduceprimaryaluminumproducts,virtuallyallofwhicharesoldtoexternalcustomersandtraders;aportionofthisprimaryaluminumisconsumedbytherollingmill.Thesmeltingoperationsproducemoltenprimaryaluminum,whichisthenformedbythecastingoperationsintoeithercommonalloyingot(e.g.,t-bar,sow,standardingot)orintovalue-addingotproducts(e.g.,foundry,billet,rod,andslab).Avarietyofexternalcustomerspurchasetheprimaryaluminumproductsforuseinfabricationoperations,whichproduceproductsprimarilyforthetransportation,buildingandconstruction,packaging,wire,andotherindustrialmarkets.Resultsfromthesaleofaluminumpowderandscraparealsoincludedinthissegment,aswellastheimpactsofembeddedaluminumderivativesrelatedtoenergysupplycontracts.

TheenergyassetssupplypowertoexternalcustomersinBraziland,toalesserextent,intheUnitedStates,aswellasinternalcustomersintheAluminum(CanadiansmeltersandWarrick(Indiana)smelterandrollingmill)andAluminasegments(Brazilianrefineries).

Therollingmillproducesaluminumsheetprimarilysolddirectlytocustomersinthepackagingmarketfortheproductionofaluminumcans(beverageandfood).Additionally,fromtheSeparationDatethroughtheendof2018,AlcoaCorporationhadatollingarrangement(contractuallyendedonDecember31,2018)withParentCowherebyParentCo’srollingmillinTennesseeproducedcansheetproductsforcertaincustomersoftheCompany’srollingoperations.AlcoasuppliedalloftherawmaterialstotheTennesseefacilityandpaidParentCoforthetollingservice.Seasonalincreasesincansheetsalesaregenerallyexperiencedinthesecondandthirdquartersofthecalendaryear.

Generally,thissegment’saluminumsalesaretransactedinU.S.dollarswhilecostsandexpensesofthissegmentaretransactedinthelocalcurrencyoftherespectiveoperations,whicharetheU.S.dollar,theeuro,theNorwegiankrone,theIcelandickróna,theCanadiandollar,theBrazilianreal,andtheAustraliandollar.

ThissegmentalsoincludesAlcoaCorporation’s25.1%ownershipinterestinthesmeltingjointventurecompanyinSaudiArabia(Alcoa’sinterestintherollingmilljointventurewasdivestedinJune2019).

Business Update. OnOctober4,2020,thelaborforceatboththerefineryandthealuminumfacilitiesatSanCiprián(Spain)initiatedastrikewhichreducedrefineryproductionandmetalshipments.ThestrikeremainedinplacethroughDecember31,2020andpreventedthesmelterfromshippingfinishedproducttocustomers.OnJanuary22,2021,theCompanyreachedagreementwiththeworkers’representativestosuspendthestrike.Aspartoftheagreement,theCompanyagreedtoconductasaleprocesstoSociedadEstataldeParticipacionesIndustriales(SEPI),aSpanishgovernmentownedentity,whichexpressedinterestinacquiringthesmelterfacility.

OnNovember30,2020,theCompanyenteredintoanagreementtoselltheWarrickRollingMilltoKaiserAluminumCorporationfortotalconsiderationofapproximately$670,whichincludes$587incashandtheassumptionof$83inotherpostretirementbenefitliabilities.Thesaleisexpectedtoclosebytheendofthefirstquarterof2021,subjecttocustomaryclosingconditions.SeePartIIItem8ofthisForm10-KinNoteCtotheConsolidatedFinancialStatementsforadditionalinformation.

Asaresultofamorecompetitiveandlong-termlaboragreementreachedin2019,theprocesstorestarttheBécancour(Canada)smelterbeganinJuly2019andwascompletedduringthethirdquarterof2020.TherestartprocesshadfavorableimpactstotheAluminumsegmentduring2020asincreasedproductionresultedinhighershipmentsandAdjustedSegmentEBITDAcomparedwith2019.

InApril2020,Alcoaannouncedthecurtailmentoftheremaining230kmtofsmeltingcapacityattheIntalco(Washington)smelter.Thefullcurtailmentof279kmt,whichincludes49kmtofearlier-curtailedcapacity,wascompletedduringthethirdquarterof2020.SeePartIIItem8ofthisForm10-KinNoteDtotheConsolidatedFinancialStatementsforadditionalinformation.

Capacity. AtDecember31,2020,theAluminumsegmenthad831kmtofidlesmeltingcapacityonabasecapacityof2,993kmt.During2020,thecurtailmentoftheIntalcosmelterincreasedidlecapacityby230kmtwhichwaspartiallyoffsetbytheremainderoftherestartprocessattheBécancoursmelter,beguninJuly2019,whichdecreasedidlecapacityby165kmt.

Production. In2020,primaryaluminumproductionincreasedby128kmtcomparedwith2019,primarilyduetohigherproductionattheBécancoursmelterasaresultoftherestartprocesspartiallyoffsetbythecurtailmentoftheIntalcosmelter.

Sales. Third-partysalesfortheAluminumsegmentdecreased6%in2020comparedwith2019,primarilyattributedtoaloweraveragerealizedpriceofprimaryaluminum.Thechangeinaveragerealizedpriceofprimaryaluminumwasmainlydrivenbya6%loweraverageLMEprice(on15-daylag)combinedwithdecreasesinregionalandproductpremiumsfromreduceddemandforvalue-addaluminumproducts.TheunfavorableimpactoflowermetalpricesandproductpremiumswaspartiallyoffsetbyanincreaseinsalesvolumedrivenprimarilyfromtherestartoftheBécancoursmelter,whichexceededthevolumedecreasefromtheIntalcocurtailmentinmid-year2020.

Segment Adjusted EBITDA.AluminumSegmentAdjustedEBITDAincreased$300in2020comparedwith2019.Theincreasewasattributabletoloweralumina,carbon,andenergycostsoutweighingthenegativeimpactfromlowermetalpricesandunfavorablemixofvalue-addproductsby$95,net.AdjustedEBITDAimproved$126ontheCompany’scombinedportfolioactionswhichincludethedivestitureoftheAvilésandLaCoruñafacilitiesinthethirdquarterof2019,therestartoftheBécancoursmelter,andthecurtailmentoftheIntalcosmelter.OtherfavorableimpactstoAdjustedEBITDAin2020includefavorableforeigncurrencychangesandthenon-recurrenceofabaddebtreserverecordedin2019againsta

Canadiancustomerreceivableduetobankruptcy.Additionally,impactsfromSection232tariffshadafavorableimpacttoAdjustedEBITDAof$21.

Forward-Look. In2021,weexpectfavorableimpactsfromtheBécancoursmelteroperatingatfullcapacityandtheIntalcocurtailment,partiallyoffsetbyincreasedrawmaterialsandenergycostsandunfavorableimpactsfromthesaleoftheWarrickRollingMill.Totalaluminumshipmentsareexpectedtorangebetween2.7and2.8millionmetrictons,adecreasefrom2020relatedtothechangesintheportfoliobutwellpositionedtobenefitfromtherecoveryinvalue-addproducts.

Reconciliations of Certain Segment Information

Reconciliation of Total Segment Third-Party Sales to Consolidated Sales

2020 2019 2018 Bauxite $ 272 $ 297 $ 271Alumina 2,627 3,250 4,215Aluminum:

Primaryaluminum 5,190 5,426 6,787Other(1) 1,175 1,377 2,042

Totalsegmentthird-partysales 9,264 10,350 13,315Other 22 83 88

Consolidatedsales $ 9,286 $ 10,433 $ 13,403

(1) Otherincludesthird-partysalesofflat-rolledaluminumandenergy,aswellasrealizedgainsandlossesrelatedtoembeddedderivativeinstruments

designatedascashflowhedgesofforwardsalesofaluminum.

Reconciliation of Total Segment Operating Costs to Consolidated Cost of Goods Sold

2020 2019 2018 Bauxite $ 835 $ 859 $ 869Alumina 3,379 3,646 3,892Primaryaluminum 5,222 5,847 6,974Other(1) 1,233 1,404 1,915Totalsegmentoperatingcosts 10,669 11,756 13,650Eliminations(2) (2,213) (2,707) (3,055)Provisionfordepreciation,depletion,amortization(3) (627) (676) (699)Other(4) 140 164 157

Consolidatedcostofgoodssold $ 7,969 $ 8,537 $ 10,053

(1) OtherlargelyrelatestotheAluminumsegment’sflat-rolledaluminumproductdivision.(2) ThislineitemrepresentstheeliminationofcostofgoodssoldrelatedtointersegmentsalesbetweenBauxiteandAluminaandbetweenAluminaand

Aluminum.(3) Depreciation,depletion,andamortizationisincludedintheoperatingcostsusedtocalculateaveragecostforeachofthebauxite,alumina,andprimary

aluminumproductdivisions(seeBauxite,Alumina,andAluminumabove).However,forfinancialreportingpurposes,depreciation,depletion,andamortizationispresentedasaseparatelineitemonAlcoaCorporation’sStatementofConsolidatedOperations.

(4) OtherincludescostsrelatedtoTransformation,andcertainotheritemsthatimpactCostofgoodssoldonAlcoaCorporation’sStatementofConsolidatedOperationsthatarenotincludedintheoperatingcostsofthesegments(seefootnotes1and3intheReconciliationofTotalSegmentAdjustedEBITDAtoConsolidatedNet(Loss)IncomeAttributabletoAlcoaCorporationbelow).

Reconciliation of Total Segment Adjusted EBITDA to Consolidated Net (Loss) Income Attributable to Alcoa Corporation

2020 2019 2018 Net(loss)incomeattributabletoAlcoaCorporation:

TotalsegmentAdjustedEBITDA $ 1,317 $ 1,626 $ 3,250Unallocatedamounts:

Transformation(1) (45) (7) (3)Intersegmenteliminations (8) 150 (8)Corporateexpenses(2) (102) (101) (96)Provisionfordepreciation,depletion,andamortization (653) (713) (733)Restructuringandothercharges,net (104) (1,031) (527)Interestexpense (146) (121) (122)Otherexpenses,net (8) (162) (64)Other(3) (78) (79) (72)

Consolidatedincome(loss)beforeincometaxes 173 (438) 1,625Provisionforincometaxes (187) (415) (732)Netincomeattributabletononcontrollinginterest (156) (272) (643)

Consolidatednet(loss)incomeattributabletoAlcoaCorporation $ (170) $ (1,125) $ 250

(1) Transformationincludes,amongotheritems,theAdjustedEBITDAofpreviouslyclosedoperations.(2) Corporateexpensesarecomposedofgeneraladministrativeandotherexpensesofoperatingthecorporateheadquartersandotherglobaladministrative

facilities,aswellasresearchanddevelopmentexpensesofthecorporatetechnicalcenter.(3) OtherincludescertainitemsthatimpactCostofgoodssoldandotherexpensesonAlcoaCorporation’sStatementofConsolidatedOperationsthatarenot

includedintheAdjustedEBITDAofthereportablesegments.

Environmental Matters

SeePartIIItem8ofthisForm10-KinNoteStotheConsolidatedFinancialStatementsundercaptionContingencies—EnvironmentalMatters.

Liquidity and Capital Resources

AlcoaCorporation’sprimaryfuturecashflowsarecenteredonoperatingactivities,particularlyworkingcapital,aswellassustainingandreturn-seekingcapitalexpenditures.Alcoa’sabilitytofunditscashneedsdependsontheCompany’songoingabilitytogenerateandraisecashinthefuture.AlthoughmanagementbelievesthatAlcoa’sfuturecashfromoperations,togetherwiththeCompany’saccesstocapitalmarkets,willprovideadequateresourcestofundoperatingandinvestingneeds,theCompany’saccessto,andtheavailabilityof,financingonacceptabletermsinthefuturewillbeaffectedbymanyfactors,including:(i)AlcoaCorporation’screditrating;(ii)theliquidityoftheoverallcapitalmarkets;and(iii)thecurrentstateoftheeconomyandcommoditymarkets.TherecanbenoassurancesthattheCompanywillcontinuetohaveaccesstocapitalmarketsontermsacceptabletoAlcoaCorporation.

ChangesinmarketconditionscausedbytheCOVID-19pandemiccouldhaveadverseeffectsonAlcoa’sabilitytoobtainadditionalfinancingandcostofborrowing.InabilitytogeneratesufficientearningscouldimpacttheCompany’sabilitytomeetthefinancialcovenantsinouroutstandingdebtandrevolvingcreditfacilityagreementsandlimitourabilitytoaccessthesesourcesofliquidityorrefinanceorrenegotiateouroutstandingdebtorcreditagreementsontermsacceptabletotheCompany.Additionally,theimpactonmarketconditionsfromtheCOVID-19pandemiccouldadverselyaffecttheliquidityofAlcoa’scustomers,suppliers,andjointventurepartnersandequitymethodinvestments,whichcouldnegativelyimpactthecollectabilityofoutstandingreceivablesandourcashflows.

InadditiontoutilizingallpreventativeandmitigationoptionsavailabletoensurecontinuityofoperationsduringtheCOVID-19pandemic,Alcoainstitutedmeasurestomanagecashduringtheglobalhealthcrisis.Takingadvantageofstrategicactionsthatwerealreadyunderway,aswellasactiveworkingcapitalandproductivityprograms,AlcoaaddeditsCOVID-19responseinitiativestoanoverallcashactionprogramtargetedtosaveordefer$900.In2020,Alcoaexceededits$900targetincashactionsthroughacombinationoftheCOVID-19responseinitiatives,strategicactions,and2020programsasdiscussedunderBusinessUpdateabove.

In2021,theCompanyanticipatescashinflowsfromthepreviouslyannouncedsaleofitsrollingmillbusinesstoKaiserAluminumCorporationfortotalconsiderationofapproximately$670,whichincludes$587incashandtheassumptionof

$83inotherpostretirementbenefitliabilities.Thesaleisexpectedtoclosebytheendofthefirstquarterof2021,subjecttocustomaryclosingconditions.

TheCompany’sliquidityoptionsdiscussedbelow,includingthecreditfacilitiesandtheReceivablesPurchaseAgreement,provideflexibilityinmanagingcashflows.ManagementbelievesthattheCompany’scashonhand,futureoperatingcashflows,andliquidityoptions,combinedwithitsstrategicactionsandcashpreservationinitiatives,areadequatetofunditsneartermoperatingandinvestingneeds.Forananalysisoflong-termliquidity,seeContractualObligationsandOff-BalanceSheetArrangementsbelow.

AtDecember31,2020,theCompany’scashandcashequivalentswere$1,607,ofwhich$1,521washeldoutsidetheUnitedStates.AlcoaCorporationhasanumberofcommitmentsandobligationsrelatedtotheCompany’soperationsinvariousforeignjurisdictions,resultingintheneedforcashoutsidetheUnitedStates.AlcoaCorporationcontinuouslyevaluatesitslocalandglobalcashneedsforfuturebusinessoperations,whichmayinfluencefuturerepatriationdecisions.

Cash from Operations

Cashprovidedfromoperationswas$394in2020comparedwithcashprovidedfromoperationsof$686in2019.Notablechangestothesourcesand(uses)ofcashfor2020include:

• ($104)incertainworkingcapitalaccounts(receivables,inventories,andaccountspayable,trade),including$82useofcashrelatedtofinishedgoodsinventoryatSanCipriánwhichcouldnotbeshippedatyearendduetotheworkers’strike;

• ($170)fromhigherpensioncontributions,includinga$250pensioncontributiontotheCompany’sU.S.pensionplansinlateDecembertocoverboththe$197deferredcontributionsdueonJanuary4,2021anda$53discretionaryprepayment;

• ($35)duetotimingofthecollectionofvalueaddedtaxreceivable; • ($74)includedasachangeinOthernoncurrentassetsrelatedtoataxpaymentontheAofAtaxmatter(seebelow);and • $449relatingtochangesintaxes,includingincometaxes.Thesourceofcashincludeschangesrelatedtolowertaxpaymentsmadein2020

comparedwith2019,primarilypaymentsonincometaxes,andchangesintheunderlyingtaxaccounts.Alsoincludes$169fromtheimpactofinterestdeductionson2020cashtaxpaymentsrelatedtotheAofAtaxmatter(seebelow).

TheremainingchangeinCashprovidedfromoperationsisprimarilyattributabletothechangesinrelatedStatementofConsolidatedOperationsamounts.

Inthethirdquarterof2020,AofApaidapproximately$74(A$107)totheATOrelatedtothetaxdisputedescribedinNoteStotheConsolidatedFinancialStatementsinPartIIItem8ofthisForm10-K.Uponpayment,AofArecordedanoncurrenttaxassessmentdeposit,astheCompanycontinuestobelieveitismorelikelythannotthatAofA’staxpositionwillbesustainedandthereforeisnotrecognizinganytaxexpenseinrelationtothismatter.InaccordancewithAustraliantaxlaws,theinitialinterestassessmentandadditionalinterestaredeductibleagainstAofA’s2020taxableincomeandresultedin$169(A$219)lowercashtaxpaymentsin2020.InterestcompoundedinfutureyearsisalsodeductibleagainstAofA’sincomeintherespectiveperiods.IfAofAisultimatelysuccessful,theinterestdeductionwouldbecometaxableasincomeintheyearthedisputeisresolved.Inaddition,shouldtheATOdecideintheinterimtoreduceanyinterestalreadyassessed,thereductionwouldbetaxableasincomeatthatpointintime.During2020,AofAcontinuedtorecorditstaxprovisionandtaxliabilitywithouteffectoftheATOassessment,sinceitexpectstoprevail.The2020taxpayableremainsonAofA’sbalancesheetasanoncurrentaccruedtaxliabilityandwillbeincreasedbythetaxeffectofsubsequentperiods’interestdeductions,untildisputeresolution,whichisexpectedtotakeseveralyears.AtDecember31,2020,thenoncurrentaccruedtaxliabilityresultingfromthecumulativeinterestdeductionswasapproximately$169(A$219).

Financing Activities

Cashprovidedfromfinancingactivitieswas$514in2020comparedwithcashusedforfinancingactivitiesof$444in2019.Theprimarysourceofcashin2020wastheissuanceof$750aggregateprincipalamountof2027NotesbyANHBVinJuly2020resultinginnetproceedsof$736.Thenetproceedswerepartiallyoffsetby$183innetcashpaidtoAluminaLimitedand$38infinancialcontributionsrelatedtothedivestedSpanishfacilities.Theuseofcashin2019wasprimarilydueto$421innetcashpaidtoAluminaLimitedand$12infinancialcontributionsrelatedtothedivestedSpanishfacilities.

Credit Facilities. AlcoaCorporationhasaccesstovarioussourcesofliquidityoutsideofcashgeneratedfromoperations.IncludedinthesesourcesistheSecondAmendedRevolvingCreditAgreement(“RevolvingCreditFacility”or“theFacility”)enteredintobyAlcoaCorporationandAlcoaNederlandHoldingB.V.(ANHBV)andamulticurrencyrevolvingcreditfacilityenteredintobyAlcoaNorwayANS.Additionally,theCompanyhasaReceivablesPurchaseAgreementthatalsoprovidesflexibilityformanagingcashneeds.

TheRevolvingCreditFacilityprovidesa$1,500seniorsecuredrevolvingcreditfacilitytobeusedforworkingcapitaland/orothergeneralcorporatepurposesofAlcoaCorporationanditssubsidiaries.TheRevolvingCreditFacilityincludesanumberofcovenants,includingfinancialcovenants,thatrequiremaintenanceofaspecifiedinterestexpensecoverageratioandaleverageratio.TheleverageratiocomparestotalindebtednesstoConsolidatedEBITDA(anearningsmetricasdefinedintheRevolvingCreditFacility)todeterminecompliancewiththefinancialcovenant.ThecalculationalsodeterminesthemaximumindebtednesspermittedundertheRevolvingCreditFacility.BasedontheleverageratiocalculationasofDecember31,2020,themaximumadditionalborrowingcapacityavailabletotheCompanytoremainincompliancewiththecovenantwas$1,322;belowfullcapacitybasedoninsufficient2020earningslevelsasdefinedintheearningsmetric.BasedontheleverageratiocalculationasofDecember31,2019,themaximumadditionalborrowingcapacityavailabletotheCompanytoremainincompliancewiththecovenantwas$1,200;thelowercapacityin2019primarilyresultingfromtheimpactoftherestructuring-relatedchargesconsideredintheearningsmetric.However,theCompanystillhastheabilitytoaccessthefull$1,500creditfacilitythroughacombinationofthemaximumadditionalborrowingcapacityandtheissuancesoflettersofcreditatDecember31,2020.

OnApril21,2020,theCompanyandANHBVenteredintoanamendment(AmendmentNo.2)totheRevolvingCreditFacilitythattemporarilyadjuststheleverageratiorequirementto3.00to1.00from2.50to1.00forthesubsequentfourconsecutivefiscalquarters,beginninginthesecondquarterof2020(theAmendmentPeriod).Theleverageratiorequirementwillreturnto2.50to1.00startinginthesecondquarterof2021.DuringtheAmendmentPeriod,theCompany,ANHBV,andanyrestrictedsubsidiarieswillberestrictedfrommakingcertainrestrictedpaymentsorincurringincrementalsecuredloansundertheRevolvingCreditFacility.

OnJune24,2020,theCompanyandANHBVenteredintoanadditionalamendment(AmendmentNo.3)totheRevolvingCreditFacilitythat(i)permanentlyadjustedthecalculationofConsolidatedEBITDA(asdefinedintheRevolvingCreditFacility)byallowingtheaddbackofcertainadditionalnon-cashcostsand(ii)temporarilyadjusted,fortheremainingfiscalquartersin2020,themannerinwhichConsolidatedCashInterestExpenseandTotalIndebtedness(eachasdefinedintheRevolvingCreditFacility)arecalculatedwithrespecttocertainseniornotesissuancesduringthefiscalyearendedDecember31,2020,inclusiveoftheJuly2020issuancedescribedbelow.

ANHBVhastheoptiontoextendtheperiodsunderAmendmentNo.3toapplytoeitherorbothfiscalquartersendingMarch31,2021andJune30,2021.However,doingsowouldalsoreducetheborrowingavailabilityundertheRevolvingCreditFacilityduringtherespectivefiscalquartersbyone-thirdofthenetproceedsofsuchnoteissuancesduringthefiscalyearendingDecember31,2020.Duringthefourthquarterof2020,ANHBVhaselectedtoextendtheperiodunderAmendmentNo.3throughthequarterendingMarch31,2021,andifANHBVelectstoextendtheperiodthroughJune30,2021,therequestforextensionmustbeprovidedonorpriortoApril1,2021.Asaresultoftheelection,the2027NotesissuedinJuly2020willreducetheaggregateamountofcommitmentsundertheRevolvingCreditFacilitybyapproximately$245duringtheapplicablefiscalquarters.

TheRevolvingCreditFacilityisscheduledtomatureonNovember21,2023unlessextendedorearlierterminatedinaccordancewiththeprovisionsoftheFacility.ANHBVmaymakeextensionrequestsduringthetermoftheRevolvingCreditFacility,subjecttothelenderconsentrequirementssetforthintheFacility.AsofDecember31,2020,AlcoaCorporationwasincompliancewithallcovenants.TherewerenoborrowingsoutstandingatDecember31,2020,andtherewerenoamountsborrowedduring2020relatedtothisfacility.

OnOctober2,2019,AlcoaNorwayANS,awholly-ownedsubsidiaryofAlcoaCorporation,enteredintoaone-year,multicurrencyrevolvingcreditfacilityagreementforNOK1.3billion(approximately$152)whichisfullyandunconditionallyguaranteedonanunsecuredbasisbyAlcoaCorporation.OnApril8,2020,AlcoaNorwayANSdrew$100againstthisfacility,andmaydosofromtimetotimeinthefuture,intheordinarycourseofbusiness.Repaymentofthedrawnamount,includinginterestaccruedat2.93%,occurreduponmaturityonJune29,2020.OnJuly3,2020,AlcoaNorwayANSamendedtherevolvingcreditfacilityagreementtoalignthetermsoftheagreementwithAmendmentNo.2andAmendmentNo.3oftheRevolvingCreditFacilitydiscussedabove.

OnOctober25,2019,awholly-ownedsubsidiaryoftheCompanyenteredintoa$120three-yearrevolvingcreditfacilityagreementsecuredbycertaincustomerreceivables.OnApril20,2020,theCompanyamendedthisagreementconvertingittoaReceivablesPurchaseAgreementtosellupto$120ofthereceivablespreviouslysecuredbythecreditfacilitywithoutrecourseonarevolvingbasis.Theunsoldportionofspecifiedreceivablepoolwillbepledgedascollateraltothepurchasing

banktosecurethesoldreceivables.DuringtheyearendedDecember31,2020,noreceivablesweresoldunderthisagreement.

Alcoa’smaximumadditionalborrowingcapacitydiscussedabovecanbeusedthroughanycombinationofAlcoa’stwocreditfacilitiesorthroughadditionalindebtedness.TheCompanymaydrawonthesefacilitiesperiodicallytoensureworkingcapitalneedsaremet.SeePartIIItem8ofthisForm10-KinNoteMtotheConsolidatedFinancialStatementsforadditionalinformationrelatedtothesecreditfacilities.

Debt.AsofDecember31,2020,AlcoaCorporationhadfouroutstandingNotesmaturingatvaryingtimes.AsummaryoftheNotesandotherlong-termdebtisshownbelow.SeePartIIItem8ofthisForm10-KinNoteMtotheConsolidatedFinancialStatementsforadditionalinformationrelatedtotheCompany’sdebt.December 31, 2020 2019 6.75%Notes,due2024 $ 750 $ 7507.00%Notes,due2026 500 5005.500%Notes,due2027 750 —6.125%Notes,due2028 500 500Other 6 84Unamortizeddiscountsanddeferredfinancingcosts (41) (34)Total 2,465 1,800Less:amountduewithinoneyear 2 1Long-termdebt,lessamountduewithinoneyear $ 2,463 $ 1,799

Ratings.AlcoaCorporation’scostofborrowingandabilitytoaccessthecapitalmarketsareaffectednotonlybymarketconditionsbutalsobytheshort-andlong-termdebtratingsassignedtoAlcoaCorporation’sdebtbythemajorcreditratingagencies.

OnApril9,2020,Moody’sInvestorService(Moody’s)affirmedaBa1ratingofAlcoa’slong-termdebt.Additionally,Moody’saffirmedthecurrentoutlookasstable.OnJuly7,2020,Moody’sreaffirmedtheBa1ratingofAlcoa’slong-termdebtaswellasthestableoutlook.

OnApril29,2020,FitchRatings(Fitch)affirmedaBB+ratingforAlcoaCorporation’slong-termdebt.Additionally,Fitchaffirmedthecurrentoutlookasstable.OnJuly7,2020,FitchreaffirmedtheBB+ratingofAlcoa’slong-termdebtaswellasthestableoutlook.

OnJune26,2020StandardandPoor’sGlobalRatings(S&P)affirmedtheBB+ratingofAlcoa’slong-termdebtandrevisedtheoutlooktonegative.OnDecember21,2020,S&PaffirmedtheBB+ratingofAlcoa’slong-termdebtandrevisedtheoutlooktostablefromnegative.

Common Stock Repurchase Program.InOctober2018,AlcoaCorporation’sBoardofDirectorsauthorizedacommonstockrepurchaseprogramwithanaggregatetransactionalvalueof$200,dependingoncashavailability,marketconditions,andotherfactors.Thisprogramdoesnothaveapredeterminedexpirationdate.AlcoaCorporationintendstoretiretherepurchasedsharesofcommonstock.InDecember2018,theCompanyrepurchased1,723,800sharesofitscommonstockfor$50;theseshareswereimmediatelyretired.Noamountswererepurchasedduring2020or2019.

Investing Activities

Cashusedforinvestingactivitieswas$167in2020comparedwith$468in2019.Thedecreaseinuseofcashfor2020waslargelyattributedtothenonrecurrenceofcashexpendituresmadein2019relatedtothedivestitureofAlcoa’sinvestmentinMa’adenRollingCompany,aswellashigherproceedsin2020fromthesaleofassets,primarilytheGumSpringswastetreatmentfacility,andlowercapitalexpenditures.

In2021,Alcoaexpectscapitalexpenditurestobeapproximately$375relatedtosustainingcapitalprojectsandapproximately$50relatedtogrowthprojects.ThetimingandamountofcapitalexpendituresmayfluctuateasaresultoftheCompany’snormaloperations.

Contractual Obligations and Off-Balance Sheet Arrangements

Contractual Obligations.AlcoaCorporationisrequiredtomakefuturepaymentsundervariouscontracts,includinglong-termpurchaseobligationsandfinancingarrangements.TheCompanyalsohascommitmentstofunditspensionplansandprovidepaymentsforotherpostretirementbenefitplans.AsofDecember31,2020,asummaryofAlcoaCorporation’soutstandingcontractualobligationsisasfollows:

Total 2021 2022-2023 2024-2025 Thereafter Operatingactivities:

Energy-relatedpurchaseobligations $ 13,774 $ 1,093 $ 2,416 $ 2,346 $ 7,919Rawmaterialpurchaseobligations 5,434 989 897 657 2,891Otherpurchaseobligations 767 249 308 136 74Estimatedminimumrequiredpensionfunding 965 255 455 255 —Otherpostretirementbenefitpayments 560 65 125 115 255Interestrelatedtototaldebt 932 159 315 264 194Operatingleases 165 68 54 21 22Layoffandotherrestructuringpayments 63 62 1 — —Deferredrevenuearrangements 52 8 16 16 12Uncertaintaxpositions 7 — — — 7

Financingactivities: Long-termdebtandShort-termborrowings 2,583 79 2 751 1,751

Investingactivities: Equitycontributions 7 7 — — —

Totals $ 25,309 $ 3,034 $ 4,589 $ 4,561 $ 13,125

Obligations for Operating Activities

Energy-relatedpurchaseobligationsconsistprimarilyofelectricityandnaturalgascontractswithexpirationdatesrangingfrom1yearto27years.Rawmaterialobligationsconsistmostlyofbauxite(relatestoAWAC’sbauxitemineinterestsinGuineaandBrazil),causticsoda,alumina,aluminumfluoride,calcinedpetroleumco*ke,andcathodeblockswithexpirationdatesrangingfromlessthan1yearto15years.Otherpurchaseobligationsconsistprincipallyoffreightforbauxiteandaluminawithexpirationdatesrangingfrom1to12years.Manyofthesepurchaseobligationscontainvariablepricingcomponents,and,asaresult,actualcashpaymentsmaydifferfromtheestimatesprovidedintheprecedingtable.Inaccordancewiththetermsofseveralofthesesupplycontracts,obligationsmaybereducedasaresultofaninterruptiontooperations,suchasaplantcurtailmentoraforcemajeureevent.

InterestrelatedtototaldebtisbasedoninterestratesineffectasofDecember31,2020andiscalculatedondebtwithmaturitiesthatextendto2028.Someofthecontractualinterestratesforcertaindebtarevariable;actualcashpaymentsmaydifferfromtheestimatesprovidedintheprecedingtable.

Estimatedminimumrequiredpensionfundingandotherpostretirementbenefitpaymentsarebasedonactuarialestimatesusingcurrentassumptionsfor,amongothers,discountrates,long-termrateofreturnonplanassets,rateofcompensationincreases,and/orhealthcarecosttrendrates.Actualpaymentsmaydifferbasedonchangesinassumptions.AlcoaCorporationhasdeterminedthatitisnotpracticabletopresentpensionfundingandotherpostretirementbenefitpaymentsbeyond2025and2030,respectively.

LayoffandotherrestructuringpaymentsexpectedtobepaidwithinoneyearrelatetofinancialcontributionsunderthesharepurchaseagreementrelatedtothedivestitureoftwoSpanishaluminumfacilities,take-or-payprovisionsofsupplycontractsassociatedwithcurtailedfacilities,acontractualcommitmenttoanItaliangovernmentagencyrelatedtothetransferofthePortovesmesmelter,severancecosts,andtheterminationofanofficeleasecontract.

DeferredrevenuearrangementsrequireAlcoaCorporationtodeliveraluminatoacertaincustomeroverthespecifiedcontractperiod(through2027).Whilethisobligationisnotexpectedtoresultincashpayments,itisincludedintheprecedingtableastheCompanywouldhavesuchanobligationifthespecifiedproductdeliveriescouldnotbemade.

Uncertaintaxpositionstakenorexpectedtobetakenonanincometaxreturnmayresultinadditionalpaymentstotaxauthorities.TheamountintheprecedingtableincludesinterestandpenaltiesaccruedrelatedtosuchpositionsasofDecember31,2020.ThetotalamountofuncertaintaxpositionsisincludedintheThereaftercolumnastheCompanyisnotabletoreasonablyestimatethetimingofpotentialfuturepayments.Ifataxauthorityagreeswiththetaxpositiontakenorexpectedtobetakenortheapplicablestatuteoflimitationsexpires,thenadditionalpaymentswillnotbenecessary.

Obligations for Financing Activities

Totaldebtamountsintheprecedingtablerepresenttheprincipalamountsofalloutstandinglong-termdebt,whichhavematuritiesthatextendto2028.

InOctober2018,AlcoaCorporation’sBoardofDirectorsauthorizedacommonstockrepurchaseprogramunderwhichtheCompanymaypurchasesharesofitsoutstandingcommonstockuptoanaggregatetransactionalvalueof$200,dependingonvariousfactors.Theprogramdoesnothaveapredeterminedexpirationdate.Accordingly,amountshavenotbeenincludedintheprecedingtable.InDecember2018,theCompanyrepurchased1,723,800sharesofitscommonstockfor$50ataweightedaveragesharepriceof$29.01(includes$0.02brokercommission).Noshareswererepurchasedin2020or2019.

Obligations for Investing Activities

Equitycontributionsarerelatedtothejointventure,ElysisTMLimitedPartnership(ElysisTM).ThisjointventurerequiresAlcoaCorporationtoinvestatotalof$21(C$28)through2021.In2018,theCompanycontributed$5(C$6)towarditsinitialinvestmentcommitmentinElysisTM.In2020,theCompanycontributedanadditional$9(C$11).

Off-Balance Sheet Arrangements.AlcoaCorporationhasoutstandingbankguaranteesandlettersofcreditrelatedto,amongothers,energycontracts,environmentalobligations,legalandtaxmatters,outstandingdebt,leasingobligations,workerscompensation,andcustomsduties.AlcoaCorporationalsohasoutstandingsuretybondsprimarilyrelatedtotaxmatters,contractperformance,workerscompensation,environmental-relatedmatters,andcustomsduties.SeePartIIItem8ofthisForm10-KinNoteStotheConsolidatedFinancialStatementsforadditionalinformation.

Critical Accounting Policies and Estimates

ThepreparationoftheCompany’sConsolidatedFinancialStatementsinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmericarequiresmanagementtomakecertainestimatesbasedonjudgmentsandassumptionsregardinguncertaintiesthataffecttheamountsreportedintheConsolidatedFinancialStatementsanddisclosedintheNotestotheConsolidatedFinancialStatements.Areasthatrequiresuchestimatesincludethereviewofproperties,plants,andequipmentandgoodwillforimpairment,andaccountingforeachofthefollowing:assetretirementobligations;environmentalandlitigationmatters;pensionplansandotherpostretirementbenefitsobligations;derivativesandhedgingactivities;andincometaxes.

Managementuseshistoricalexperienceandallavailableinformationtomaketheseestimates,includingconsiderationsfortheimpactofthecoronavirus(COVID-19)pandemiconthemacroeconomicenvironment,andactualresultsmaydifferfromthoseusedtopreparetheCompany’sConsolidatedFinancialStatementsatanygiventime.TheCompanyhasexperiencedcertainnegativeimpactsasaresultoftheCOVID-19pandemictodate;however,theultimatemagnitudeanddurationoftheCOVID-19pandemiccontinuestobeunknown,andthepandemic’sultimatefutureimpactontheCompany’sbusiness,financialcondition,operatingresults,cashflows,andmarketcapitalizationisuncertain.Inaddition,theCOVID-19pandemiccouldadverselyimpactestimatesmadeasofDecember31,2020regardingfutureresults,suchastherecoverabilityofgoodwillandlong-livedassetsandtherealizabilityofdeferredtaxassets.Despitetheseinherentlimitations,managementbelievesthattheamountsrecordedinthefinancialstatementsrelatedtotheseitemsarebasedonitsbestestimatesandjudgmentsusingallrelevantinformationavailableatthetime.

AsummaryoftheCompany’ssignificantaccountingpoliciesisincludedinPartIIItem8ofthisForm10-KinNoteBtotheConsolidatedFinancialStatements.

Properties, Plants, and Equipment.Properties,plants,andequipmentarereviewedforimpairmentwhenevereventsorchangesincirc*mstancesindicatethatthecarryingamountofsuchassets(assetgroup)maynotberecoverable,includingintheperiodwhenassetshavemetthecriteriatobeclassifiedasheldforsale.Recoverabilityofassetsisdeterminedbycomparingtheestimatedundiscountednetcashflowsoftheoperationsrelatedtotheassets(assetgroup)totheircarryingamount.Animpairmentlosswouldberecognizedwhenthecarryingamountoftheassets(assetgroup)exceedsthefairvalue.Theamountoftheimpairmentlosstoberecordediscalculatedastheexcessofthecarryingvalueoftheassets(assetgroup)overtheirfairvalue,withfairvaluedeterminedusingthebestinformationavailable,whichgenerallyisadiscountedcashflow(DCF)model.Thedeterminationofwhatconstitutesanassetgroup,theassociatedestimatedundiscountednetcashflows,andtheestimatedusefullivesofassetsalsorequiresignificantjudgments.

Goodwill.Goodwillisnotamortized;itisinsteadreviewedforimpairmentannually(inthefourthquarter)ormorefrequentlyifindicatorsofimpairmentexistorifadecisionismadetosellorexitabusiness.Managementwilltestgoodwillonaqualitativeorquantitativebasis.Asignificantamountofjudgmentisinvolvedindeterminingifanindicatorofimpairmenthasoccurred.Suchindicatorsmayinclude,amongothers,deteriorationingeneraleconomicconditions,negativedevelopmentsinequityandcreditmarkets,adversechangesinthemarketsinwhichanentityoperates,increasesininputcoststhathaveanegativeeffectonearningsandcashflows,oratrendofnegativeordecliningcashflowsovermultiple

periods.Thefairvaluethatcouldberealizedinanactualtransactionmaydifferfromthatusedtoevaluategoodwillforimpairment.

Inreviewinggoodwillforimpairmentunderthequalitativeassessment,anentitywillconsideriftheexistenceofeventsorcirc*mstancesleadstoadeterminationthatitismorelikelythannot(greaterthan50%)thattheestimatedfairvalueofareportingunitislessthanitscarryingamount.Ifitisdeterminedthatanimpairmentismorelikelythannot,theentityisthenrequiredtoperformaquantitativeimpairmenttest,otherwisenofurtheranalysisisrequired.

Underthequantitativeimpairmenttest,theevaluationofimpairmentinvolvescomparingthecurrentfairvalueofeachreportingunittoitscarryingvalue,includinggoodwill.ManagementusesaDCFmodeltoestimatethecurrentfairvalueofitsreportingunits.AnumberofsignificantassumptionsandestimatesareinvolvedintheapplicationoftheDCFmodeltoforecastoperatingcashflows,includingmarketsandmarketshare,salesvolumesandprices,productioncosts,taxrates,capitalspending,discountrate,andworkingcapitalchanges.

IntheeventtheestimatedfairvalueofareportingunitpertheDCFmodelislessthanthecarryingvalue,animpairmentlossequaltotheexcessofthereportingunit’scarryingvalueoveritsfairvaluenottoexceedthetotalamountofgoodwillapplicabletothatreportingunitwouldberecognized.

ManagementperformedqualitativeassessmentsoftheBauxiteandAluminareportingunitsin2020anddeterminedthatitwasnotmorelikelythannotthatthefairvalueofeitherreportingunitwaslessthancarryingvalue.ManagementlastperformedaquantitativeimpairmenttestfortheBauxitereportingunitin2018andtheAluminareportingunitin2019.Atthetimeofeachquantitativeassessment,theestimatedfairvalueofeachrespectivereportingunitwassubstantiallyinexcessofcarryingvalue,resultinginnoimpairment.Additionally,inallprioryearspresented,therehavebeennotriggeringeventsthatnecessitatedanimpairmenttestforeithertheBauxiteorAluminareportingunits.

Asset Retirement Obligations.AlcoaCorporationrecognizesassetretirementobligations(AROs)relatedtolegalobligationsassociatedwiththestandardoperationofbauxitemines,aluminarefineries,andaluminumsmelters.TheseAROsconsistprimarilyofcostsassociatedwithminereclamation,closureofbauxiteresidueareas,spentpotliningdisposal,andlandfillclosure.AlcoaCorporationalsorecognizesAROsforanysignificantleaserestorationobligation,ifrequiredbyaleaseagreement,andforthedisposalofregulatedwastematerialsrelatedtothedemolitionofcertainpowerfacilities.ThefairvaluesoftheseAROsarerecordedonadiscountedbasis,atthetimetheobligationisincurred,andaccretedovertimeforthechangeinpresentvalue.Additionally,AlcoaCorporationcapitalizesassetretirementcostsbyincreasingthecarryingamountoftherelatedlong-livedassetsanddepreciatingtheseassetsovertheirremainingusefullife.

Certainconditionalassetretirementobligations(CAROs)relatedtoaluminarefineries,aluminumsmelters,rollingmills,andenergygenerationfacilitieshavenotbeenrecordedintheConsolidatedFinancialStatementsduetouncertaintiessurroundingtheultimatesettlementdate.ACAROisalegalobligationtoperformanassetretirementactivityinwhichthetimingand/ormethodofsettlementareconditionalonafutureeventthatmayormaynotbewithinAlcoaCorporation’scontrol.Suchuncertaintiesexistasaresultoftheperpetualnatureofthestructures,maintenanceandupgradeprograms,andotherfactors.Atthedateareasonableestimateoftheultimatesettlementdatecanbemade(e.g.,planneddemolition),AlcoaCorporationwouldrecordanARO.SuchamountsmaybematerialtotheConsolidatedFinancialStatements.

Environmental Matters.Expendituresforcurrentoperationsareexpensedorcapitalized,asappropriate.Expendituresrelatingtoexistingconditionscausedbypastoperations,whichwillnotcontributetofuturerevenues,areexpensed.Liabilitiesarerecordedwhenremediationcostsareprobableandcanbereasonablyestimated.Theliabilitymayincludecostssuchassiteinvestigations,consultantfees,feasibilitystudies,outsidecontractors,andmonitoringexpenses.Estimatesaregenerallynotdiscountedorreducedbypotentialclaimsforrecovery,whicharerecognizedasagreementsarereachedwiththirdparties.TheestimatesalsoincludecostsrelatedtootherpotentiallyresponsiblepartiestotheextentthatAlcoaCorporationhasreasontobelievesuchpartieswillnotfullypaytheirproportionateshare.Theliabilityiscontinuouslyreviewedandadjustedtoreflectcurrentremediationprogress,prospectiveestimatesofrequiredactivity,andotherfactorsthatmayberelevant,includingchangesintechnologyorregulations.

Litigation Matters.Forassertedclaimsandassessments,liabilitiesarerecordedwhenanunfavorableoutcomeofamatterisdeemedtobeprobableandthelossisreasonablyestimable.Managementdeterminesthelikelihoodofanunfavorableoutcomebasedonmanyfactorssuchas,amongothers,thenatureofthematter,availabledefensesandcasestrategy,progressofthematter,viewsandopinionsoflegalcounselandotheradvisors,applicabilityandsuccessofappealsprocesses,andtheoutcomeofsimilarhistoricalmatters.Onceanunfavorableoutcomeisdeemedprobable,managementweighstheprobabilityofestimatedlosses,andthemostreasonablelossestimateisrecorded.Ifanunfavorableoutcomeofamatterisdeemedtobereasonablypossible,thenthematterisdisclosed,andnoliabilityisrecorded.Withrespecttounassertedclaimsorassessments,managementmustfirstdeterminethattheprobabilitythatanassertionwillbemadeislikely,then,adeterminationastothelikelihoodofanunfavorableoutcomeandtheabilitytoreasonablyestimatethepotentiallossismade.Legalmattersarereviewedonacontinuousbasistodetermineiftherehasbeenachangeinmanagement’sjudgmentregardingthelikelihoodofanunfavorableoutcomeortheestimateofapotentialloss.

Pension and Other Postretirement Benefits.Liabilitiesandexpensesforpensionandotherpostretirementbenefitsaredeterminedusingactuarialmethodologiesandincorporatesignificantassumptions,includingtheinterestrateusedtodiscountthefutureestimatedliability,theexpectedlong-termrateofreturnonplanassets,andseveralassumptionsrelatingtotheemployeeworkforce(salaryincreases,healthcarecosttrendrates,retirementage,andmortality).

Theyieldcurvemodelusedtodevelopthediscountrateparallelstheplans’projectedcashflowsandhasaweightedaveragedurationof11years.Theunderlyingcashflowsofthehigh-qualitycorporatebondsincludedinthemodelexceedthecashflowsneededtosatisfytheCompany’splanobligationsmultipletimes.Ifadeepmarketofhigh-qualitycorporatebondsdoesnotexistinacountry,thentheyieldongovernmentbondsplusacorporatebondyieldspreadisused.Theimpactonthecombinedpensionandotherpostretirementliabilitiesofachangeintheweightedaveragediscountrateof¼of1%wouldbeapproximately$205andeitherachargeorcreditofapproximately$3topretaxearningsinthefollowingyear.

Theexpectedlong-termrateofreturnonplanassetsisgenerallyappliedtoafive-yearmarket-relatedvalueofplanassets(afour-yearaverageorthefairvalueattheplanmeasurementdateisusedforcertainnon-U.S.plans).Theprocessusedbymanagementtodevelopthisassumptionisonethatreliesonforward-lookinginvestmentreturnsbyassetclass.Managementincorporatesexpectedfutureinvestmentreturnsoncurrentandplannedassetallocationsusinginformationfromvariousexternalinvestmentmanagersandconsultants,aswellasmanagement’sownjudgment.Achangeintheassumptionfortheweightedaverageexpectedlong-termrateofreturnonplanassetsof¼of1%wouldimpactpretaxearningsbyapproximately$11for2021.

Mortalityrateassumptionsarebasedonmortalitytablesandfutureimprovementscalespublishedbythirdparties,suchastheSocietyofActuaries,andconsiderotheravailableinformationincludinghistoricaldataaswellasstudiesandpublicationsfromreputablesources.

Derivatives and Hedging.Derivativesareheldforpurposesotherthantradingandarepartofaformallydocumentedriskmanagementprogram.Alcoaaccountsforhedgesoffirmcustomercommitmentsforaluminumasfairvaluehedges.ThefairvaluesofthederivativesandchangesinthefairvaluesoftheunderlyinghedgeditemsarereportedasassetsandliabilitiesintheConsolidatedBalanceSheet.ChangesinthefairvaluesofthesederivativesandunderlyinghedgeditemsgenerallyoffsetandarerecordedeachperiodinSales,consistentwiththeunderlyinghedgeditem.

TheCompanyaccountsforhedgesofforeigncurrencyexposuresandcertainforecastedtransactionsascashflowhedges.ThefairvaluesofthederivativesarerecordedasassetsandliabilitiesintheConsolidatedBalanceSheet.ThechangesinthefairvaluesofthesederivativesarerecordedinOthercomprehensive(loss)incomeandarereclassifiedtoSales,Costofgoodssold,orOtherexpenses,netintheperiodinwhichearningsareimpactedbythehedgeditemsorintheperiodthatthetransactionnolongerqualifiesasacashflowhedge.Thesecontractscoverthesameperiodsasknownorexpectedexposures,generallynotexceedingfiveyears.Ifnohedgingrelationshipisdesignated,thederivativeismarkedtomarketthroughOtherexpenses,net.CashflowsfromderivativesarerecognizedintheStatementofConsolidatedCashFlowsinamannerconsistentwiththeunderlyingtransactions.

Income Taxes.Theprovisionforincometaxesisdeterminedusingtheassetandliabilityapproachofaccountingforincometaxes.Underthisapproach,theprovisionforincometaxesrepresentsincometaxespaidorpayable(orreceivedorreceivable)forthecurrentyearplusthechangeindeferredtaxesduringtheyear.Deferredtaxesrepresentthefuturetaxconsequencesexpectedtooccurwhenthereportedamountsofassetsandliabilitiesarerecoveredorpaidandresultfromdifferencesbetweenthefinancialandtaxbasesofassetsandliabilitiesandareadjustedforchangesintaxratesandtaxlawswhenenacted.

Valuationallowancesarerecordedtoreducedeferredtaxassetswhenitismorelikelythannot(greaterthan50%)thatataxbenefitwillnotberealized.Inevaluatingtheneedforavaluationallowance,managementappliesjudgmentinassessingallavailablepositiveandnegativeevidenceandconsidersallpotentialsourcesoftaxableincome,includingincomeavailableincarrybackperiods,futurereversalsoftaxabletemporarydifferences,projectionsoftaxableincome,andincomefromtaxplanningstrategies.Positiveevidenceincludesfactorssuchasahistoryofprofitableoperations,projectionsoffutureprofitabilitywithinthecarryforwardperiod,includingfromtaxplanningstrategies,andAlcoaCorporation’sexperiencewithsimilaroperations.Existingfavorablecontractsandtheabilitytosellproductsintoestablishedmarketsareadditionalpositiveevidence.Negativeevidenceincludesitemssuchascumulativelosses,projectionsoffuturelosses,orcarryforwardperiodsthatarenotlongenoughtoallowfortheutilizationofadeferredtaxassetbasedonexistingprojectionsofincome.Incertainjurisdictions,deferredtaxassetsrelatedtocumulativelossesexistwithoutavaluationallowancewhereinmanagement’sjudgmenttheweightofthepositiveevidencemorethanoffsetsthenegativeevidenceofthecumulativelosses.Uponchangesinfactsandcirc*mstances,managementmayconcludethatdeferredtaxassetsforwhichnovaluationallowanceiscurrentlyrecordedmaynotberealized,resultinginafuturechargetoestablishavaluationallowance.Existingvaluationallowancesarere-examinedunderthesamestandardsofpositiveandnegativeevidence.Ifitisdeterminedthatitismorelikelythannotthatadeferredtaxassetwillberealized,theappropriateamountofthevaluationallowance,ifany,isreleased.Deferredtaxassetsandliabilitiesarealsore-measuredtoreflectchangesinunderlyingtaxratesduetolawchangesandthegrantingandlapseoftaxholidays.

Taxbenefitsrelatedtouncertaintaxpositionstakenorexpectedtobetakenonataxreturnarerecordedwhensuchbenefitsmeetamorelikelythannotthreshold.Otherwise,thesetaxbenefitsarerecordedwhenataxpositionhasbeeneffectivelysettled,whichmeansthatthestatuteoflimitationshasexpired,ortheappropriatetaxingauthorityhascompletedtheirexaminationeventhoughthestatuteoflimitationsremainsopen.Interestandpenaltiesrelatedtouncertaintaxpositionsarerecognizedaspartoftheprovisionforincometaxesandareaccruedbeginningintheperiodthatsuchinterestandpenaltieswouldbeapplicableunderrelevanttaxlawuntilsuchtimethattherelatedtaxbenefitsarerecognized.

Related Party Transactions

AlcoaCorporationbuysproductsfromandsellsproductstovariousrelatedcompanies,consistingofentitiesinwhichAlcoaCorporationretainsa50%orlessequityinterest,atnegotiatedpricesbetweenthetwoparties.ThesetransactionswerenotmaterialtothefinancialpositionorresultsofoperationsofAlcoaCorporationforallperiodspresented.

Recently Adopted Accounting Guidance

SeePartIIItem8ofthisForm10-KinNoteBtotheConsolidatedFinancialStatementsundercaptionRecentlyAdoptedAccountingGuidance.

Recently Issued Accounting Guidance

SeePartIIItem8ofthisForm10-KinNoteBtotheConsolidatedFinancialStatementsundercaptionRecentlyIssuedAccountingGuidance.

Item 7A.Quantitative and Qualitative Disclosures About Market Risk.

SeePartIIItem8ofthisForm10-KinNotePtotheConsolidatedFinancialStatementsundercaptionDerivatives.

Item 8. Financial Statements and Supplementary Data.

Management’s Reports to Alcoa Corporation Stockholders

Management’s Report on Financial Statements and Practices

TheaccompanyingConsolidatedFinancialStatementsofAlcoaCorporationanditssubsidiaries(theCompany)werepreparedbymanagement,whichisresponsiblefortheirintegrityandobjectivity,inaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica(GAAP)andincludeamountsthatarebasedonmanagement’sbestjudgmentsandestimates.TheotherfinancialinformationincludedintheCompany’sAnnualReportonForm10-KfortheyearendedDecember31,2020isconsistentwiththatintheConsolidatedFinancialStatements.

ManagementrecognizesitsresponsibilityforconductingtheCompany’saffairsaccordingtothehigheststandardsofpersonalandcorporateconduct.Thisresponsibilityischaracterizedandreflectedinkeypolicystatementsissuedfromtimetotimeregarding,amongotherthings,conductofitsbusinessactivitieswithinthelawsofthehostcountriesinwhichtheCompanyoperatesandpotentiallyconflictingoutsidebusinessinterestsofitsemployees.TheCompanymaintainsasystematicprogramtoassesscompliancewiththesepolicies.

Management’s Report on Internal Control over Financial Reporting

Managementisresponsibleforestablishingandmaintainingadequateinternalcontroloverfinancialreporting,asdefinedinRules13a-15(f)and15d-15(f)oftheU.S.SecuritiesExchangeActof1934(asamended),fortheCompany.TheCompany’sinternalcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithGAAP.TheCompany’sinternalcontroloverfinancialreportingincludesthosepoliciesandproceduresthat(i)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsoftheCompany,(ii)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithGAAP,andthatreceiptsandexpendituresoftheCompanyarebeingmadeonlyinaccordancewithauthorizationsofmanagementanddirectorsoftheCompany,and(iii)providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,ordispositionoftheCompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also,projectionsofanyevaluationofeffectivenesstofutureperiodsaresubjecttotheriskthatcontrolsmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

ManagementconductedanassessmenttoevaluatetheeffectivenessoftheCompany’sinternalcontroloverfinancialreportingasofDecember31,2020usingthecriteriainInternal Control—Integrated Framework(2013)issuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission.Basedonthisassessment,managementconcludedthattheCompanymaintainedeffectiveinternalcontroloverfinancialreportingasofDecember31,2020.

PricewaterhouseCoopersLLP,theindependentregisteredpublicaccountingfirmthatauditedtheCompany’sfinancialstatementsincludedinthisAnnualReportonForm10-KfortheyearendedDecember31,2020,hasauditedtheCompany’sinternalcontroloverfinancialreportingasofDecember31,2020andhasissuedanattestationreport,whichisincludedherein./s/RoyC.HarveyRoyC.HarveyPresidentandChiefExecutiveOfficer/s/WilliamF.OplingerWilliamF.OplingerExecutiveVicePresidentandChiefFinancialOfficer

February25,2021

Report of Independent Registered Public Accounting Firm

Tothe ShareholdersandBoardofDirectorsofAlcoaCorporation

Opinions on the Financial Statements and Internal Control over Financial Reporting

WehaveauditedtheaccompanyingconsolidatedbalancesheetofAlcoaCorporationanditssubsidiaries(the“Company”)asofDecember31,2020and2019,andtherelatedconsolidatedstatementsofoperations,comprehensiveincome,changesinconsolidatedequityandcashflowsforeachofthethreeyearsintheperiodendedDecember31,2020,includingtherelatednotes(collectivelyreferredtoasthe“consolidatedfinancialstatements”).WealsohaveauditedtheCompany’sinternalcontroloverfinancialreportingasofDecember31,2020,basedoncriteriaestablishedinInternal Control—Integrated Framework(2013)issuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(COSO).

Inouropinion,theconsolidatedfinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,thefinancialpositionoftheCompanyasofDecember31,2020and2019,andtheresultsofitsoperationsanditscashflowsforeachofthethreeyearsintheperiodendedDecember31,2020inconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.Alsoinouropinion,theCompanymaintained,inallmaterialrespects,effectiveinternalcontroloverfinancialreportingasofDecember31,2020,basedoncriteriaestablishedinInternal Control—Integrated Framework(2013)issuedbytheCOSO.

Change in Accounting Principle

AsdescribedinNoteBtotheconsolidatedfinancialstatements,theCompanychangedthemannerinwhichitaccountsforleasesin2019.

Basis for Opinions

TheCompany’smanagementisresponsiblefortheseconsolidatedfinancialstatements,formaintainingeffectiveinternalcontroloverfinancialreporting,andforitsassessmentoftheeffectivenessofinternalcontroloverfinancialreporting,includedintheaccompanyingManagement’sReportonInternalControloverFinancialReporting.OurresponsibilityistoexpressopinionsontheCompany’sconsolidatedfinancialstatementsandontheCompany’sinternalcontroloverfinancialreportingbasedonouraudits.WeareapublicaccountingfirmregisteredwiththePublicCompanyAccountingOversightBoard(UnitedStates)(PCAOB)andarerequiredtobeindependentwithrespecttotheCompanyinaccordancewiththeU.S.federalsecuritieslawsandtheapplicablerulesandregulationsoftheSecuritiesandExchangeCommissionandthePCAOB.

WeconductedourauditsinaccordancewiththestandardsofthePCAOB.Thosestandardsrequirethatweplanandperformtheauditstoobtainreasonableassuranceaboutwhethertheconsolidatedfinancialstatementsarefreeofmaterialmisstatement,whetherduetoerrororfraud,andwhethereffectiveinternalcontroloverfinancialreportingwasmaintainedinallmaterialrespects.

Ourauditsoftheconsolidatedfinancialstatementsincludedperformingprocedurestoassesstherisksofmaterialmisstatementoftheconsolidatedfinancialstatements,whetherduetoerrororfraud,andperformingproceduresthatrespondtothoserisks.Suchproceduresincludedexamining,onatestbasis,evidenceregardingtheamountsanddisclosuresintheconsolidatedfinancialstatements.Ourauditsalsoincludedevaluatingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationoftheconsolidatedfinancialstatements.Ourauditofinternalcontroloverfinancialreportingincludedobtaininganunderstandingofinternalcontroloverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Ourauditsalsoincludedperformingsuchotherproceduresasweconsiderednecessaryinthecirc*mstances.Webelievethatourauditsprovideareasonablebasisforouropinions.

Definition and Limitations of Internal Control over Financial Reporting

Acompany’sinternalcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.Acompany’sinternalcontroloverfinancialreportingincludesthosepoliciesandproceduresthat(i)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;(ii)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorizationsofmanagementanddirectorsofthecompany;and(iii)providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

Critical Audit Matters

Thecriticalauditmattercommunicatedbelowisamatterarisingfromthecurrentperiodauditoftheconsolidatedfinancialstatementsthatwascommunicatedorrequiredtobecommunicatedtotheauditcommitteeandthat(i)relatestoaccountsordisclosuresthatarematerialtotheconsolidatedfinancialstatementsand(ii)involvedourespeciallychallenging,subjective,orcomplexjudgments.Thecommunicationofcriticalauditmattersdoesnotalterinanywayouropinionontheconsolidatedfinancialstatements,takenasawhole,andwearenot,bycommunicatingthecriticalauditmatterbelow,providingaseparateopiniononthecriticalauditmatterorontheaccountsordisclosurestowhichitrelates.

Realization of Net Deferred Tax Assets at Alcoa Canada Company

AsdescribedinNotesBandQtotheconsolidatedfinancialstatements,theCompanyhad$451millionofnetdeferredtaxassetsasofDecember31,2020,including$148millionofnetdeferredtaxassetsatAlcoaCanadaCompany,mostsignificantlyrelatedtopensionobligationsandderivatives.AlcoaCanadaCompanyisinathree-yearcumulativelosspositionasofDecember31,2020.Valuationallowancesarerecordedtoreducedeferredtaxassetswhenitismorelikelythannot(greaterthan50%)thatataxbenefitwillnotberealized.Managementappliesjudgmentinassessingallavailablepositiveandnegativeevidence,suchashistoryofprofitableoperationsandprojectionsoftaxableincome,inevaluatingwhetheritismorelikelythannotthatthenetdeferredtaxassetswillberealizedinthefuture.Projectionsoftaxableincomeisbasedonmacroeconomicindicatorsandinvolvesassumptionsrelatedto,amongothers,commodityprices,volumelevels,andkeyinputsandrawmaterialssuchasalumina,calcinedpetroleumco*ke,liquidpitch,energy,labor,andtransportationcosts.

TheprincipalconsiderationsforourdeterminationthatperformingproceduresrelatingtotherealizationofnetdeferredtaxassetsatAlcoaCanadaCompanyisacriticalauditmatterare(i)thesignificantjudgmentbymanagementindeterminingwhetherthenetdeferredtaxassetsaremorelikelythannottoberealizedinthefutureasAlcoaCanadaCompanyisinathree-yearcumulativelossposition;and(ii)ahighdegreeofauditorjudgment,subjectivity,andeffortinperformingproceduresandevaluatingauditevidencerelatingtomanagement’sassessmentoftherealizationofnetdeferredtaxassetsandmanagement’sassumptionforprojectedtaxableincomerelatedtocommodityprices,andcostsrelatingtoalumina.

Addressingthematterinvolvedperformingproceduresandevaluatingauditevidenceinconnectionwithformingouroverallopinionontheconsolidatedfinancialstatements.Theseproceduresincludedtestingtheeffectivenessofcontrolsrelatingtomanagement’sassessmentoftherealizationofnetdeferredtaxassetsatAlcoaCanadaCompany,includingcontrolsoverprojectedtaxableincome.Theseproceduresalsoincluded,amongothers,evaluatingthepositiveandnegativeevidenceavailableinmanagement’sassessmentoftherealizationofnetdeferredtaxassetsatAlcoaCanadaCompany,testingthecompletenessandaccuracyofunderlyingdatausedinmanagement’sassessment,andevaluatingthereasonablenessofmanagement’sassumptionforprojectedtaxableincome.Evaluatingmanagement’sassumptionforprojectedtaxableincome,relatedtocommodityprices,andcostsrelatingtoaluminainvolvedevaluatingwhethertheassumptionsusedbymanagementwerereasonableconsidering(i)thecurrentandpastperformanceofAlcoaCanadaCompany,(ii)theconsistencywithexternalmarketandindustrydata,and(iii)whethertheassumptionwasconsistentwithevidenceobtainedinotherareasoftheaudit./s/PricewaterhouseCoopersLLPPricewaterhouseCoopersLLPPittsburgh,PennsylvaniaFebruary25,2021

WehaveservedastheCompany’sauditorsince2015.

Alcoa Corporation and Subsidiaries

Statement of Consolidated Operations(in millions, except per-share amounts)

For the year ended December 31, 2020 2019 2018 Sales(E) $ 9,286 $ 10,433 $ 13,403Costofgoodssold(exclusiveofexpensesbelow) 7,969 8,537 10,053Selling,generaladministrative,andotherexpenses 206 280 248Researchanddevelopmentexpenses 27 27 31Provisionfordepreciation,depletion,andamortization 653 713 733Restructuringandothercharges,net(D) 104 1,031 527Interestexpense(U) 146 121 122Otherexpenses,net(U) 8 162 64

Totalcostsandexpenses 9,113 10,871 11,778Income(loss)beforeincometaxes 173 (438) 1,625Provisionforincometaxes(Q) 187 415 732Net(loss)income (14) (853) 893Less:Netincomeattributabletononcontrollinginterest 156 272 643Net (loss) income attributable to Alcoa Corporation (170) (1,125) 250Earnings per share attributable to Alcoa Corporation common shareholders (F):

Basic $ (0.91) $ (6.07) $ 1.34Diluted $ (0.91) $ (6.07) $ 1.33

Theaccompanyingnotesareanintegralpartoftheconsolidatedfinancialstatements.

Alcoa Corporation and Subsidiaries

Statement of Consolidated Comprehensive Income(in millions)

Alcoa Corporation Noncontrolling

interest Total For the year ended December 31, 2020 2019 2018 2020 2019 2018 2020 2019 2018 Net(loss)income $ (170) $ (1,125) $ 250 $ 156 $ 272 $ 643 $ (14) $ (853) $ 893Othercomprehensive(loss)income,netoftax(G):

Changeinunrecognizednetactuariallossandpriorservicecost/benefitrelatedtopensionandotherpostretirementbenefits (254) 1 503 (11) (10) 1 (265) (9) 504Foreigncurrencytranslationadjustments (225) (89) (604) (10) (24) (229) (235) (113) (833)Netchangeinunrecognizedgains/lossesoncashflowhedges (176) (321) 718 (21) (11) (20) (197) (332) 698

TotalOthercomprehensive(loss)income,netoftax (655) (409) 617 (42) (45) (248) (697) (454) 369Comprehensive (loss) income $ (825) $ (1,534) $ 867 $ 114 $ 227 $ 395 $ (711) $ (1,307) $ 1,262

Theaccompanyingnotesareanintegralpartoftheconsolidatedfinancialstatements.

Alcoa Corporation and Subsidiaries

Consolidated Balance Sheet(in millions)

December 31, 2020 2019 Assets Currentassets:

Cashandcashequivalents(P) $ 1,607 $ 879Receivablesfromcustomers 471 546Otherreceivables 85 114Inventories(J) 1,398 1,644Fairvalueofderivativeinstruments(P) 21 59Assetsheldforsale(C) 648 —Prepaidexpensesandothercurrentassets 290 288

Totalcurrentassets 4,520 3,530Properties,plants,andequipment,net(K) 7,190 7,916Investments(H) 1,051 1,113Deferredincometaxes(Q) 655 642Fairvalueofderivativeinstruments(P) — 18Othernoncurrentassets(U) 1,444 1,412

Total Assets $ 14,860 $ 14,631Liabilities Currentliabilities:

Accountspayable,trade $ 1,403 $ 1,484Accruedcompensationandretirementcosts 395 413Taxes,includingincometaxes 91 104Fairvalueofderivativeinstruments(P) 103 67Liabilitiesheldforsale(C) 242 —Othercurrentliabilities 525 494Long-termdebtduewithinoneyear(M&P) 2 1

Totalcurrentliabilities 2,761 2,563Long-termdebt,lessamountduewithinoneyear(M&P) 2,463 1,799Accruedpensionbenefits(O) 1,492 1,505Accruedotherpostretirementbenefits(O) 744 749Assetretirementobligations(R) 625 606Environmentalremediation(S) 293 296Fairvalueofderivativeinstruments(P) 742 581Noncurrentincometaxes(Q) 209 276Othernoncurrentliabilitiesanddeferredcredits(U) 515 370

Totalliabilities 9,844 8,745Contingenciesandcommitments(S) Equity AlcoaCorporationshareholders’equity:

Commonstock(N) 2 2Additionalcapital 9,663 9,639Accumulateddeficit (725) (555)Accumulatedothercomprehensiveloss(G) (5,629) (4,974)

TotalAlcoaCorporationshareholders’equity 3,311 4,112Noncontrollinginterest(A) 1,705 1,774

Totalequity 5,016 5,886Total Liabilities and Equity $ 14,860 $ 14,631

Theaccompanyingnotesareanintegralpartoftheconsolidatedfinancialstatements.

Alcoa Corporation and Subsidiaries

Statement of Consolidated Cash Flows(in millions)

For the year ended December 31, 2020 2019 2018 Cash from Operations Net(loss)income $ (14) $ (853) $ 893Adjustmentstoreconcilenet(loss)incometocashfromoperations:

Depreciation,depletion,andamortization 653 713 733Deferredincometaxes(Q) (26) 15 (30)Equityearnings,netofdividends(H) 20 21 17Restructuringandothercharges,net(D) 104 1,031 527Netgainfrominvestingactivities—assetsales(U) (173) (3) —Netperiodicpensionbenefitcost(O) 138 119 146Stock-basedcompensation(N) 25 30 35Provisionforbaddebtexpense 2 21 —Other 32 30 (59)Changesinassetsandliabilities,excludingeffectsofdivestituresandforeigncurrencytranslationadjustments:

Decrease(increase)inreceivables 16 283 (43)Decrease(increase)ininventories(J) 122 137 (306)Decrease(increase)inprepaidexpensesandothercurrentassets 17 27 (32)Increase(decrease)inaccountspayable,trade 25 (153) (165)(Decrease)inaccruedexpenses (153) (175) (319)Increase(decrease)intaxes,includingincometaxes 119 (330) 241Pensioncontributions(O) (343) (173) (992)(Increase)innoncurrentassets (82) (24) (101)(Decrease)innoncurrentliabilities (88) (30) (97)

Cash provided from operations 394 686 448Financing Activities Additionstodebt(originalmaturitiesgreaterthanthreemonths)(M) 739 — 560Paymentsondebt(originalmaturitiesgreaterthanthreemonths)(M) (1) (7) (135)Proceedsfromtheexerciseofemployeestockoptions(N) 1 2 23Repurchaseofcommonstock(N) — — (50)Financialcontributionsforthedivestitureofbusinesses(C) (38) (12) —Contributionsfromnoncontrollinginterest(A) 24 51 149Distributionstononcontrollinginterest (207) (472) (827)Other (4) (6) (8)

Cash provided from (used for) financing activities 514 (444) (288)Investing Activities Capitalexpenditures (353) (379) (399)Proceedsfromthesaleofassetsandbusinesses(C) 198 23 1Additionstoinvestments(H) (12) (112) (7)

Cash used for investing activities (167) (468) (405)Effect of exchange rate changes on cash and cash equivalents and restricted cash (14) (7) (4)

Netchangeincashandcashequivalentsandrestrictedcash 727 (233) (249)Cashandcashequivalentsandrestrictedcashatbeginningofyear 883 1,116 1,365

Cash and cash equivalents and restricted cash at end of year $ 1,610 $ 883 $ 1,116

Theaccompanyingnotesareanintegralpartoftheconsolidatedfinancialstatements.

Alcoa Corporation and Subsidiaries

Statement of Changes in Consolidated Equity(in millions)

Alcoa Corporation shareholders

Common

stock Additional

capital

Retained(deficit)earnings

Accumulatedother

compre-hensive loss

Noncontrollinginterest

Totalequity

Balance at December 31, 2017 $ 2 $ 9,590 $ 318 $ (5,182) $ 2,240 $ 6,968Netincome — — 250 — 643 893Othercomprehensiveincome(loss)(G) — — — 617 (248) 369Stock-basedcompensation(N) — 35 — — — 35Commonstockissued:Compensationplans(N) — 23 — — — 23Repurchaseofcommonstock(N) — (50) — — — (50)Contributions — — — — 149 149Distributions — — — — (827) (827)Other — 13 2 — 13 28Balance at December 31, 2018 2 9,611 570 (4,565) 1,970 7,588Net(loss)income — — (1,125) — 272 (853)Othercomprehensiveloss(G) — — — (409) (45) (454)Stock-basedcompensation(N) — 30 — — — 30Commonstockissued:Compensationplans(N) — 2 — — — 2Contributions — — — — 51 51Distributions — — — — (472) (472)Other — (4) — — (2) (6)Balance at December 31, 2019 2 9,639 (555) (4,974) 1,774 5,886Net(loss)income — — (170) — 156 (14)Othercomprehensiveloss(G) — — — (655) (42) (697)Stock-basedcompensation(N) — 25 — — — 25Commonstockissued:Compensationplans(N) — 1 — — — 1Contributions — — — — 24 24Distributions — — — — (207) (207)Other — (2) — — — (2)Balance at December 31, 2020 $ 2 $ 9,663 $ (725) $ (5,629) $ 1,705 $ 5,016

Theaccompanyingnotesareanintegralpartoftheconsolidatedfinancialstatements.

Alcoa Corporation and subsidiariesNotes to the Consolidated Financial Statements

(dollars in millions, except per-share amounts; metric tons in thousands (kmt))

A. Basis of Presentation

AlcoaCorporation(ortheCompany)isaverticallyintegratedaluminumcompanycomprisedofbauxitemining,aluminarefining,aluminumproduction(smelting,casting,androlling),andenergygeneration.Throughdirectandindirectownership,theCompanyhas28operatinglocationsinninecountriesaroundtheworld,situatedprimarilyinAustralia,Brazil,Canada,Iceland,Norway,Spain,andtheUnitedStates.

ReferencesintheseNotesto“ParentCo”refertoAlcoaInc.,aPennsylvaniacorporation,anditsconsolidatedsubsidiariesthroughOctober31,2016,atwhichtimeitwasrenamedArconicInc.(Arconic)andsincehasbeensubsequentlyrenamedHowmetAerospaceInc.

Separation Transaction.OnNovember1,2016(theSeparationDate),ParentCoseparatedintotwostandalone,publicly-tradedcompanies,AlcoaCorporationandParentCo,effectiveat12:01a.m.EasternTime(theSeparationTransaction).Regular-waytradingofAlcoaCorporation’scommonstockbeganwiththeopeningoftheNewYorkStockExchangeonNovember1,2016underthetickersymbol“AA.”TheCompany’scommonstockhasaparvalueof$0.01pershare.

Basis of Presentation.TheConsolidatedFinancialStatementsofAlcoaCorporationarepreparedinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica(GAAP).InaccordancewithGAAP,certainsituationsrequiremanagementtomakeestimatesbasedonjudgmentsandassumptions,whichmayaffectthereportedamountsofassetsandliabilitiesandthedisclosureofcontingentassetsandliabilitiesatthedateofthefinancialstatements.Theyalsomayaffectthereportedamountsofrevenuesandexpensesduringthereportingperiods.Managementuseshistoricalexperienceandallavailableinformationtomaketheseestimates,includingconsiderationsfortheimpactofthecoronavirus(COVID-19)pandemiconthemacroeconomicenvironment.TheCompanyhasexperiencedcertainnegativeimpactsasaresultoftheCOVID-19pandemictodate;however,theultimatemagnitudeanddurationoftheCOVID-19pandemiccontinuestobeunknown,andthepandemic’sultimatefutureimpactontheCompany’sbusiness,financialcondition,operatingresults,cashflows,andmarketcapitalizationisuncertain.Inaddition,theCOVID-19pandemiccouldadverselyimpactestimatesmadeasofDecember31,2020regardingfutureresults,suchastherecoverabilityofgoodwillandlong-livedassetsandtherealizabilityofdeferredtaxassets.Despitetheseinherentlimitations,managementbelievesthattheamountsrecordedinthefinancialstatementsrelatedtotheseitemsarebasedonitsbestestimatesandjudgmentsusingallrelevantinformationavailableatthetime.Managementregularlyevaluatesthejudgmentsandassumptionsusedinitsestimates,andresultscoulddifferfromthoseestimatesuponfutureeventsandtheireffectsornewinformation.Certainamountsinpreviouslyissuedfinancialstatementswerereclassifiedtoconformtothecurrentperiodpresentation.

Principles of Consolidation.TheConsolidatedFinancialStatementsoftheCompanyincludetheaccountsofAlcoaCorporationandcompaniesinwhichAlcoaCorporationhasacontrollinginterest,includingthosethatcomprisetheAlcoaWorldAlumina&Chemicals(AWAC)jointventure(seebelow).Intercompanytransactionshavebeeneliminated.TheequitymethodofaccountingisappliedtoinvestmentsinaffiliatesandotherjointventuresoverwhichtheCompanyhassignificantinfluencebutdoesnothaveeffectivecontrol.InvestmentsinaffiliatesinwhichAlcoaCorporationcannotexercisesignificantinfluenceareaccountedforonthecostmethod.

AWACisanunincorporatedglobaljointventurebetweenAlcoaCorporationandAluminaLimitedandconsistsofseveralaffiliatedoperatingentities,whichown,haveaninterestin,oroperatethebauxiteminesandaluminarefinerieswithintheCompany’sBauxiteandAluminasegments(exceptforthePoçosdeCaldasmineandrefineryandportionsoftheSãoLuísrefineryandinvestmentinMineraçãoRiodoNorteS.A.,allinBrazil)andaportion(55%)ofthePortlandsmelter(Australia)withintheCompany’sAluminumsegment.AlcoaCorporationowns60%andAluminaLimitedowns40%oftheseindividualentities,whichareconsolidatedbytheCompanyforfinancialreportingpurposesandincludeAlcoaofAustraliaLimited(AofA),AlcoaWorldAluminaLLC(AWA),AlcoaWorldAluminaBrasilLtda.(AWAB),andAlúminaEspañola,S.A.(Española).AluminaLimited’sinterestintheequityofsuchentitiesisreflectedasNoncontrollinginterestontheaccompanyingConsolidatedBalanceSheet.

ManagementevaluateswhetheranAlcoaCorporationentityorinterestisavariableinterestentityandwhethertheCompanyistheprimarybeneficiary.Consolidationisrequiredifbothofthesecriteriaaremet.AlcoaCorporationdoesnothaveanyvariableinterestentitiesrequiringconsolidation.

Related Party Transactions.AlcoaCorporationbuysproductsfromandsellsproductstovariousrelatedcompanies,consistingofentitiesinwhichtheCompanyretainsa50%orlessequityinterest,atnegotiatedpricesbetweenthetwoparties.ThesetransactionswerenotmaterialtothefinancialpositionorresultsofoperationsofAlcoaCorporationforallperiodspresented.

B. Summary of Significant Accounting Policies

Cash Equivalents.Cashequivalentsarehighlyliquidinvestmentspurchasedwithanoriginalmaturityofthreemonthsorless.

Inventory Valuation.Inventoriesarecarriedatthelowerofcostormarket,withthecostofinventoriesprincipallydeterminedundertheaveragecostmethod.

Properties, Plants, and Equipment.Properties,plants,andequipmentarerecordedatcost.Interestrelatedtotheconstructionofqualifyingassetsiscapitalizedaspartoftheconstructioncosts.Depreciationisrecordedprincipallyonthestraight-linemethodovertheestimatedusefullivesoftheassets.Depreciationisrecordedontemporarilyidledfacilitiesuntilsuchtimemanagementapprovesapermanentclosure.Thefollowingtabledetailstheweightedaverageusefullivesofstructuresandmachineryandequipmentbytypeofoperation(numbersinyears):

Structures

Machineryand

equipment Bauxitemining 34 16Aluminarefining 29 29Aluminumsmeltingandcasting 37 23Energygeneration 33 24Aluminumrolling 32 23

Repairsandmaintenancearechargedtoexpenseasincurredwhilecostsforsignificantimprovementsthataddproductivecapacityorthatextendtheusefullifearecapitalized.GainsorlossesfromthesaleofassetsaregenerallyrecordedinOtherexpenses,net.Properties,plants,andequipmentarereviewedforimpairmentwhenevereventsorchangesincirc*mstancesindicatethatthecarryingamountofsuchassets(assetgroup)maynotberecoverable.Assets held for sale. Upondeterminingthatalong-livedassetordisposalgroupmeetsthecriteriatobeclassifiedasheldforsale,theCompanyceasesdepreciationandreportslong-livedassetsand/ortheassetsandliabilitiesofthedisposalgroup,ifmaterial,inthelineitemsAssetsheldforsaleandLiabilitiesheldforsale,respectively,intheConsolidatedBalanceSheet.Currentornoncurrentclassificationisdeterminedbasedontheplanneduseoftheproceedsandtimingoftransaction.TheCompanywillmeasurealong-livedassetordisposalgroupthatisclassifiedasheldforsaleatthelowerofitscarryingvalueorfairvaluelessanycoststosell.Anylossresultingfromthismeasurementisrecognizedinaperiodinwhichthefairvaluelessanycoststosellislessthanthecarryingvalueofalong-livedassetordisposalgroup.Conversely,gainsarenotrecognizedonthesaleofalong-livedassetordisposalgroupuntilthedateofsale(seeNoteC).

Leases.OnJanuary1,2019,theCompanyadoptedAccountingStandardsUpdateNo.2016-02,Leases,issuedbytheFinancialAccountingStandardsBoardregardingtheaccountingforleases,usingthemodifiedretrospectiveapproach.TheCompanydetermineswhetheranarrangementisaleaseattheinceptionofthearrangementbasedonthetermsandconditionsinthecontract.AcontractcontainsaleaseifthereisanidentifiedassetwhichtheCompanyhastherighttocontrol.Bothoperatingandfinancingleaseright-of-use(ROU)assetsareincludedinProperties,plants,andequipmentwiththecorrespondingoperatingleaseliabilitiesincludedwithinOthercurrentliabilitiesandOthernoncurrentliabilitiesanddeferredcredits,whilefinancingleaseliabilitiesareincludedinLong-termdebtduewithinoneyearandLong-termdebt,lessamountduewithinoneyearontheConsolidatedBalanceSheet.

OperatingleaseROUassetsandliabilitiesarerecognizedatthecommencementdatebasedonthepresentvalueofleasepaymentsovertheleaseterm.TheCompanyusesitsincrementalborrowingrateatthecommencementdateindeterminingthepresentvalueofleasepaymentsunlessarateisimplicitinthelease.Leasetermsincludeoptionstoextendtheleasewhenitisreasonablycertainthatthoseoptionswillbeexercised.Leaseswithaninitialtermof12monthsorless,includinganticipatedrenewals,arenotrecordedonthebalancesheet.

TheCompanyhasmadeapolicyelectionnottorecordanynon-leasecomponentsofaleaseagreementintheleaseliability.VariableleasepaymentsarenotpresentedaspartoftheinitialROUassetorliabilityrecordedattheinceptionofacontract.

Leaseexpenseforoperatingleasepaymentsisrecognizedonastraight-linebasisovertheleaseterm.Forfinanceleases,interestexpenseisrecognizedontheleaseliabilityandtheROUassetisamortizedovertheleaseterm.

Equity Investments.Alcoainvestsinanumberofprivately-heldcompanies,primarilythroughjointventuresandconsortia,whichareaccountedforusingtheequitymethod.TheequitymethodisappliedinsituationswheretheCompanyhastheabilitytoexercisesignificantinfluence,butnotcontrol,overtheinvestee.Managementreviewsequityinvestmentsforimpairmentwhenevercertainindicatorsarepresentsuggestingthatthecarryingvalueofaninvestmentisnotrecoverable.

Deferred Mining Costs.Alcoarecognizesdeferredminingcostsduringthedevelopmentstageofaminelifecycle.Suchcostsincludetheconstructionofaccessandhaulroads,detaileddrillingandgeologicalanalysistofurtherdefinethegradeandqualityoftheknownbauxite,andoverburdenremovalcosts.ThesecostsrelatetosectionsoftherelatedmineswheretheCompanyiscurrentlyextractingbauxiteorpreparingforproductioninthenearterm.Thesesectionsareoutlinedandplannedincrementallyandgenerallyareminedoverperiodsrangingfromonetofiveyears,dependingonminespecifics.Theamountofgeologicaldrillingandtestingnecessarytodeterminetheeconomicviabilityofthebauxitedepositbeingminedissuchthatthereservesareconsideredtobeproven,andtheminingcostsareamortizedbasedonthislevelofreserves.DeferredminingcostsareincludedinOthernoncurrentassetsontheaccompanyingConsolidatedBalanceSheet.

Goodwill and Other Intangible Assets.Goodwillisnotamortizedbutisreviewedforimpairmentannually(inthefourthquarter)ormorefrequentlyifindicatorsofimpairmentexistorifadecisionismadetosellorexitabusiness.

Goodwillisallocatedamongandevaluatedforimpairmentatthereportingunitlevel,whichisdefinedasanoperatingsegmentoronelevelbelowanoperatingsegment.TheCompanyhasfivereportingunits,ofwhichthreeareincludedintheAluminumsegment(smelting/casting,energygeneration,androllingoperations).TheremainingtworeportingunitsaretheBauxiteandAluminasegments.Ofthesefivereportingunits,onlyBauxiteandAluminacontaingoodwill.AsofDecember31,2020,thecarryingvalueofthegoodwillforBauxiteandAluminawas$49and$96,respectively.Theseamountsincludeanallocationofgoodwillheldatthecorporatelevel(seeNoteL).

Goodwillistestedforimpairmentbyassessingqualitativefactorstodeterminewhetheritismorelikelythannotthatthefairvalueofthereportingunitislessthanitscarryingamountorperformingaquantitativeassessmentusingadiscountedcashflowmethod.Thequalitativeassessmentconsidersfactorssuchasgeneraleconomicconditions,equityandcreditmarkets,industryandmarketconditions,andearningsandcashflowtrends.Ifthequalitativeassessmentindicatesapossibleimpairment,thenaquantitativeimpairmenttestisperformedtodeterminethefairvalueofthereportingunitusingadiscountedcashflowmethod.Otherwise,nofurtheranalysisisrequired.Alcoa’spolicyforitsannualreviewofgoodwillistoperformthequantitativeimpairmenttestforeachofitstworeportingunitsthatcontaingoodwillatleastonceduringeverythree-yearperiodaspartofitsannualreviewofgoodwill.

Intangibleassetswithfiniteusefullivesareamortizedgenerallyonastraight-linebasisovertheperiodsbenefited.Thefollowingtabledetailstheweightedaverageusefullivesofsoftwareandotherintangibleassetsbytypeofoperation(numbersinyears):

Software Other intangible

assets Bauxitemining 3 —Aluminarefining 7 25Aluminumsmeltingandcasting 3 40Energygeneration — 29Aluminumrolling 3 20

Asset Retirement Obligations.Alcoarecognizesassetretirementobligations(AROs)relatedtolegalobligationsassociatedwiththestandardoperationofbauxitemines,aluminarefineries,andaluminumsmelters.TheseAROsconsistprimarilyofcostsassociatedwithminereclamation,closureofbauxiteresidueareas,spentpotliningandregulatedwastematerialsdisposal,andlandfillclosure.Additionally,costsarerecordedasAROsuponmanagement’sdecisiontopermanentlycloseanddemolishcertainstructuresandforanysignificantleaserestorationobligations.ThefairvaluesoftheseAROsarerecordedonadiscountedbasisatthetimetheobligationisincurredandaccretedovertimeforthechangeinpresentvalue.Additionally,theCompanycapitalizesassetretirementcostsbyincreasingthecarryingamountoftherelatedlong-livedassetsanddepreciatingtheseassetsovertheirremainingusefullife.Certainconditionalassetretirementobligationsrelatedtoaluminarefineries,aluminumsmelters,rollingmills,andenergygenerationfacilitieshavenotbeenrecordedintheConsolidatedFinancialStatementsduetouncertaintiessurroundingtheultimatesettlementdate.Thefairvalueoftheseassetretirementobligationswillberecordedwhenareasonableestimateoftheultimatesettlementdatecanbemade.

Environmental Matters.Environmentalrelatedexpendituresforcurrentoperationsareexpensedorcapitalized,asappropriate.Expendituresrelatingtoexistingconditionscausedbypastoperations,whichwillnotcontributetofuturerevenues,areexpensed.Liabilitiesarerecordedwhenremediationcostsareprobableandcanbereasonablyestimated.The

estimatesalsoincludecostsrelatedtootherpotentiallyresponsiblepartiestotheextentthatAlcoahasreasontobelievesuchpartieswillnotfullypaytheirproportionateshare.IninstanceswheretheCompanyhasongoingmonitoringandmaintenanceresponsibilities,itisAlcoa’spolicytomaintainareserveequaltofiveyearsofexpectedcosts.Theliabilityiscontinuouslyreviewedandadjustedtoreflectcurrentremediationprogress,prospectiveestimatesofrequiredactivity,andotherfactorsthatmayberelevant,includingchangesintechnologyorregulations.

Litigation Matters.Forassertedclaimsandassessments,liabilitiesarerecordedwhenanunfavorableoutcomeofamatterisdeemedtobeprobableandthelossisreasonablyestimable.Withrespecttounassertedclaimsorassessments,managementmustfirstdeterminethattheprobabilitythatanassertionwillbemadeislikely.Then,adeterminationastothelikelihoodofanunfavorableoutcomeandtheabilitytoreasonablyestimatethepotentiallossismade.Legalmattersarereviewedonacontinuousbasistodetermineiftherehasbeenachangeinmanagement’sjudgmentregardingthelikelihoodofanunfavorableoutcomeortheestimateofapotentialloss.Legalcosts,whichareprimarilyforgenerallitigation,environmentalcompliance,taxdisputes,andgeneralcorporatematters,areexpensedasincurred.

Revenue Recognition.TheCompanyrecognizesrevenuewhenitsatisfiesaperformanceobligation(s)inaccordancewiththeprovisionsofacustomerorderorcontract.Thisisachievedwhencontroloftheproducthasbeentransferredtothecustomer,whichisgenerallydeterminedwhentitle,ownership,andriskoflosspasstothecustomer,allofwhichoccursuponshipmentordeliveryoftheproduct.Theshippingtermsvaryacrossallbusinessesanddependontheproduct,thecountryoforigin,andthetypeoftransportation.Accordingly,thesaleofAlcoa’sproductstoitscustomersrepresentsingleperformanceobligationsforwhichrevenueisrecognizedatapointintime.Revenueisbasedontheconsiderationitexpectstoreceiveinexchangeforitsproducts.Returnsandotheradjustmentshavenotbeenmaterial.Basedontheforegoing,nosignificantjudgmentisrequiredtodeterminewhencontrolofaproducthasbeentransferredtoacustomer.

TheCompanyconsidersshippingandhandlingactivitiesascoststofulfillthepromisetotransfertherelatedproducts.Asaresult,customerpaymentsofshippingandhandlingcostsarerecordedasacomponentofrevenue.Taxescollected(e.g.,sales,use,value-added,excise)fromitscustomersrelatedtothesaleofitsproductsareremittedtogovernmentalauthoritiesandexcludedfromrevenue.

Stock-Based Compensation.Compensationexpenseforemployeeequitygrantsisrecognizedusingthenon-substantivevestingperiodapproach,inwhichtheexpense(netofestimatedforfeitures)isrecognizedratablyovertherequisiteserviceperiodbasedonthegrantdatefairvalue.Thefairvalueofnewstockoptionsisestimatedonthedateofgrantusingalattice-pricingmodel.Determiningthefairvalueofstockoptionsatthegrantdaterequiresjudgment,includingestimatesfortheaveragerisk-freeinterestrate,dividendyield,volatility,annualforfeiturerate,andexercisebehavior.Theseassumptionsmaydiffersignificantlybetweengrantdatesbecauseofchangesintheactualresultsoftheseinputsthatoccurovertime.

Mostplanparticipantscanchoosewhethertoreceivetheirawardintheformofstockoptions,stockunits,oracombinationofboth.Thischoiceismadebeforethegrantisissuedandisirrevocable.

Pension and Other Postretirement Benefits. Liabilitiesandexpensesforpensionandotherpostretirementbenefitsaredeterminedusingactuarialmethodologiesandincorporatesignificantassumptions,includingtheinterestrateusedtodiscountthefutureestimatedliability,theexpectedlong-termrateofreturnonplanassets,andseveralassumptionsrelatingtotheemployeeworkforce(salaryincreases,healthcarecosttrendrates,retirementage,andmortality).

Derivatives and Hedging.Derivativesareheldforpurposesotherthantradingandarepartofaformallydocumentedriskmanagementprogram.

Alcoaaccountsforhedgesoffirmcustomercommitmentsforaluminumasfairvaluehedges.Thefairvaluesofthederivativesandchangesinthefairvaluesoftheunderlyinghedgeditemsarereportedasassetsandliabilitiesinthe

ConsolidatedBalanceSheet.ChangesinthefairvaluesofthesederivativesandunderlyinghedgeditemsgenerallyoffsetandarerecordedeachperiodinSales,consistentwiththeunderlyinghedgeditem.

Ifnohedgingrelationshipisdesignated,thederivativeismarkedtomarketthroughOtherexpenses,net.

CashflowsfromderivativesarerecognizedintheStatementofConsolidatedCashFlowsinamannerconsistentwiththeunderlyingtransactions.

Income Taxes.Theprovisionforincometaxesisdeterminedusingtheassetandliabilityapproachofaccountingforincometaxes.Underthisapproach,theprovisionforincometaxesrepresentsincometaxespaidorpayable(orreceivedorreceivable)forthecurrentyearplusthechangeindeferredtaxesduringtheyear.DeferredtaxesrepresentthefuturetaxconsequencesexpectedtooccurwhenthereportedamountsofassetsandliabilitiesarerecoveredorpaidandresultfromdifferencesbetweenthefinancialandtaxbasesofAlcoa’sassetsandliabilitiesandareadjustedforchangesintaxratesandtaxlawswhenenacted.

Valuationallowancesarerecordedtoreducedeferredtaxassetswhenitismorelikelythannot(greaterthan50%)thatataxbenefitwillnotberealized.Inevaluatingtheneedforavaluationallowance,managementappliesjudgementinassessingallavailablepositiveandnegativeevidenceandconsidersallpotentialsourcesoftaxableincome,includingincomeavailableincarrybackperiods,futurereversalsoftaxabletemporarydifferences,projectionsoftaxableincome,andincomefromtaxplanningstrategies.Positiveevidenceincludesfactorssuchasahistoryofprofitableoperations,projectionsoffutureprofitabilitywithinthecarryforwardperiod,includingfromtaxplanningstrategies,andAlcoa’sexperiencewithsimilaroperations.Existingfavorablecontractsandtheabilitytosellproductsintoestablishedmarketsareadditionalpositiveevidence.Negativeevidenceincludesitemssuchascumulativelosses,projectionsoffuturelosses,orcarryforwardperiodsthatarenotlongenoughtoallowfortheutilizationofadeferredtaxassetbasedonexistingprojectionsofincome.Deferredtaxassetsforwhichnovaluationallowanceisrecordedmaynotberealizeduponchangesinfactsandcirc*mstances,resultinginafuturechargetoestablishavaluationallowance.Existingvaluationallowancesarere-examinedunderthesamestandardsofpositiveandnegativeevidence.Ifitisdeterminedthatitismorelikelythannotthatadeferredtaxassetwillberealized,theappropriateamountofthevaluationallowance,ifany,isreleased.Deferredtaxassetsandliabilitiesarealsore-measuredtoreflectchangesinunderlyingtaxratesduetolawchangesandthegrantingandlapseoftaxholidays.

Taxbenefitsrelatedtouncertaintaxpositionstakenorexpectedtobetakenonataxreturnarerecordedwhensuchbenefitsmeetamorelikelythannotthreshold.Otherwise,thesetaxbenefitsarerecordedwhenataxpositionhasbeeneffectivelysettled,whichmeansthatthestatuteoflimitationhasexpiredortheappropriatetaxingauthorityhascompletedtheirexaminationeventhoughthestatuteoflimitationsremainsopen.Interestandpenaltiesrelatedtouncertaintaxpositionsarerecognizedaspartoftheprovisionforincometaxesandareaccruedbeginningintheperiodthatsuchinterestandpenaltieswouldbeapplicableunderrelevanttaxlawuntilsuchtimethattherelatedtaxbenefitsarerecognized.

Foreign Currency.ThelocalcurrencyisthefunctionalcurrencyforAlcoa’ssignificantoperationsoutsidetheUnitedStates,exceptforcertainoperationsinCanadaandIceland,wheretheU.S.dollarisusedasthefunctionalcurrency.ThedeterminationofthefunctionalcurrencyforAlcoa’soperationsismadebasedontheappropriateeconomicandmanagementindicators.Wherelocalcurrencyisthefunctionalcurrency,assetsandliabilitiesaretranslatedintoU.S.dollarsusingyear-endexchangeratesandincomeandexpensesaretranslatedusingtheaverageexchangeratesforthereportingperiod.UnrealizedforeigncurrencytranslationgainsandlossesaredeferredinAccumulatedothercomprehensivelossontheConsolidatedBalanceSheet.

Recently Adopted Accounting Guidance.OnJanuary1,2020,theCompanyadoptedthefollowingAccountingStandardUpdates(ASU)issuedbytheFinancialAccountingStandardBoard(FASB),noneofwhichhadamaterialimpactontheCompany’sConsolidatedFinancialStatements:

• ASUNo.2019-08,Compensation—StockCompensation(Topic718)andRevenuefromContractswithCustomers(Topic606);• ASUNo.2018-15,Intangibles–GoodwillandOther–Internal-UseSoftware;• ASUNo.2018-14,Compensation—RetirementBenefits—DefinedBenefitPlans—General(Subtopic715-20);• ASUNo.2018-13,FairValueMeasurement(Topic820);and,• ASUNo.2016-13,FinancialInstruments–CreditLosses.

Recently Issued Accounting Guidance.

InMarch2020,theFASBissuedASUNo.2020-04toprovideoptionalguidanceforalimitedperiodoftimetoeasethepotentialburdeninaccountingfor(orrecognizingtheeffectsof)referenceratereformonfinancialreporting.ManagementiscurrentlyevaluatingtheimpactofthereplacementoftheLondonInterbankOfferedRate(LIBOR)aswellastheimpactthattheexpectedadoptionoftheapplicableprovisionswithintheoptionalguidancewillhaveontheConsolidatedFinancialStatements.Theadoptionoftheapplicableprovisionswillcoincidewiththemodificationsoftheaffectedcontracts.

InDecember2019,theFASBissuedASUNo.2019-12,IncomeTaxes(Topic740)whichisintendedtosimplifytheaccountingforincometaxesbyeliminatingcertainexceptionsandsimplifyingcertainrequirementsunderTopic740.Updatesarerelatedtointraperiodtaxallocation,deferredtaxliabilitiesforequitymethodinvestments,interimperiodtaxcalculations,taxlawsorratechangesininterimperiods,andincometaxesrelatedtoemployeestockownershipplans.TheguidanceforASUNo.2019-12becomeseffectiveforAlcoaonJanuary1,2021.Onceadopted,theprovisionwilleliminatetherequirementtomakeanintraperiodallocationifthereisalossincontinuingoperationsandincomeoutsideofcontinuingoperations.ManagementhascompletedourassessmentoftheimpactrelatedtothisguidanceandconcludedthattheadoptionofthisguidancewillnothaveamaterialimpactontheCompany’sConsolidatedFinancialStatements.

C. Divestitures and Held for Sale

Divestitures.

GumSpringsWasteTreatmentBusiness

Duringthefirstquarterof2020,theCompanysoldElementalEnvironmentalSolutionsLLC(EES),awholly-ownedAlcoasubsidiarythatoperatedthewasteprocessingfacilityinGumSprings,Arkansas,toaglobalenvironmentalfirminatransactionvaluedat$250.Relatedtothistransaction,theCompanyreceived$200incashandrecordedagainof$181(pre-andafter-tax;seeNoteU).Further,anadditional$50isheldinescrowtobepaidtoAlcoaifcertainpost-closingconditionsaresatisfied,whichwouldresultinadditionalgainbeingrecorded.

AfobakaHydroelectricDam

OnDecember31,2019,AlcoacompletedthetransferoftheAfobakahydroelectricdamtotheGovernmentoftheRepublicofSuriname,accordingtodefinitiveagreementsapprovedbyitsparliament.AftercurtailmentofAlcoa’soperationsinSurinamein2015andpermanentclosureinearly2017,Alcoacontinuedtooperatethedam,sellingelectricitytothegovernmentforitssubsequentsaletocustomersinSuriname.Atthetimeofthetransfer,thefixedassetsrelatedtothedamwerefullydepreciatedandalloutstandingamountsduetoAlcoaforelectricitysalesweresettled.

AvilésandLaCoruñaAluminumFacilities

InJuly2019,AlcoacompletedthedivestitureoftheAvilésandLaCoruña(Spain)aluminumfacilitiestoPARTERCapitalGroupAG(PARTER)inasaleprocessendorsedbytheSpanishgovernmentandsupportedbytheworkers’representatives.In2020,PARTERsolditsmajoritystakeinthefacilitiestoanunrelatedparty,hereafterreferredtocollectivelyasthebuyer.TheCompanyhadnoknowledgeofthesubsequenttransactionandhasfiledalawsuitclaimingthatthesalewasinbreachofthesaleagreementbetweenAlcoaandPARTER.

Chargesrelatedtothecurtailment,employeedismissalprocess,anddivestituretotaled$253,whichwererecordedinRestructuringandothercharges,net,Costofgoodssold,andSelling,generaladministrative,andotherexpensesasoutlinedbelow.

Relatedtothedivestiture,theCompanyrecordedRestructuringandothercharges,net,of$127fortheyearendedDecember31,2019,resultingfromfinancialcontributionsofupto$95tothebuyerpertheagreementandanetchargeof$32tomeetaworkingcapitalcommitmentandwrite-offtheremainingnetbookvalueofthefacilities’netassets.Netcashoutflowsrelatedtothetransactionwere$38and$47fortheyearsendedDecember31,2020and2019,respectively.FinancialcontributionsmadeaftertheclosingdateareclassifiedasCashusedforfinancingactivitiesontheCompany’sStatementofConsolidatedCashFlows.Inaccordancewiththetermsoftheagreement,paymentsagainsttherestructuringreservecouldbemadethroughthefourthquarterof2021,andaportionoftheremainingpaymentscouldbeoffsetbycarbonemissioncreditsmonetizedbythebuyer.

ThesmeltersatAvilésandLaCoruñawerecurtailedinFebruary2019andchargesrecordedpriortothecompletionofthedivestitureintheStatementofConsolidatedOperationsinclude:Restructuringandothercharges,netforassetimpairments($80),severanceandemployeerelatedcosts($20),andcontractterminationcosts($8);Costofgoodssoldprimarilyforthewritedownofremaininginventoriestotheirnetrealizablevalue($16);and,Selling,generaladministrative,andotherexpensesformiscellaneouscharges($2).SeeNoteDforadditionaldetail.

Ma’adenRollingCompany

InDecember2009,Alcoainvestedinajointventurerelatedtotheownershipandoperationofanintegratedaluminumcomplex(bauxitemine,aluminarefinery,aluminumsmelter,androllingmill)inSaudiArabia.Thejointventureisowned74.9%bytheSaudiArabianMiningCompany(knownasMa’aden)and25.1%byAlcoa,andoriginallyconsistedofthreeseparatecompaniesasfollows:theMa’adenBauxiteandAluminaCompany(MBAC;thebauxitemineandaluminarefinery),theMa’adenAluminiumCompany(MAC;thealuminumsmelterandcasthouse),andtheMa’adenRollingCompany(MRC;therollingmill).

InJune2019,AlcoaandMa’adenamendedthejointventureagreementthatgovernstheoperationsofeachofthethreecompaniesthatcomprisethejointventure.Theamendment,amongotheritems,transferredAlcoa’s25.1%interestinMRCtoMa’adenand,asaresult,AlcoahasnofurtherdirectorindirectequityinterestinMRC.Priortotheamendment,bothpartnerscontributed$100toMRCtomeetcurrentcashrequirements.Asaresultofthedivestiture,AlcoarecordedRestructuringandothercharges,netof$319forthewrite-offoftheinvestmentinMRC($161),thecashcontributionsdescribedabove($100),thewrite-offoftheCompany’sshareofMRC’sdelinquentpayablesduetoMAC($59)thatwereforgivenaspartofthistransaction,partiallyoffsetbyagainresultingfromthewrite-offofthefairvalueofdebtguarantee($1).SeeNoteDforadditionaldetail.

Held for Sale.

WarrickRollingMill

OnNovember30,2020,AlcoaenteredintoanagreementtosellitsrollingmilllocatedatWarrickOperations(WarrickRollingMill),anintegratedaluminummanufacturingsitenearEvansville,Indiana(WarrickOperations),toKaiserAluminumCorporation(Kaiser)fortotalconsiderationofapproximately$670,whichincludes$587incashandtheassumptionof$83inotherpostretirementemployeebenefitliabilities.Uponannouncement,theassetsandliabilitiesrelatedtothistransactionbecameclassifiedasheldforsale.Aspartofthetransaction,Alcoawillenterintoamarket-basedmetalsupplyagreementwithKaiseratclosing.AlcoawillalsoenterintoagroundleaseagreementwithKaiserforpropertythatAlcoawillcontinuetoownatWarrickOperations.Approximately1,170employeesatWarrickRollingMill,whichincludesthecasthouse,hotmill,coldmills,andcoatingandslittinglines,willbecomeemployeesofKaiseroncethetransactioniscomplete.

Thesaleisexpectedtoclosebytheendofthefirstquarterof2021,subjecttocustomaryclosingconditions.Alcoaexpectstospendapproximately$100forsiteseparationandtransactioncosts,withapproximatelyhalfbeingspentin2021andtheremainderin2022and2023.Uponclosureofthetransaction,theCompanyexpectstorecognizeagaininOtherexpenses,net(pre-andafter-tax)ontheStatementofConsolidatedOperations.Alcoawillcontinuetoownandoperatethesite’s269,000metrictonperyearaluminumsmelterandthepowerplant,whichtogetheremployapproximately660people.TheintegratedsiteresultsareincludedwithintheAluminumsegment.

TheassetsandliabilitiesoftheWarrickRollingMillwereclassifiedasheldforsaleintheCompany’sConsolidatedBalanceSheetasofDecember31,2020andconsistedofthefollowing:

December 31, 2020 Assets

Receivablesfromcustomers $ 86Otherreceivables 6Inventories 164

Totalcurrentassets 256Properties,plants,andequipment 1,423AccumulatedDepreciation (1,031)

Properties,plants,andequipment,net 392Total Assets held for sale 648

Liabilities Accountspayable,trade 121Accruedcompensationandretirementcosts 5Othercurrentliabilities 25

Totalcurrentliabilities 151Accruedotherpostretirementbenefits 83Othernoncurrentliabilities 8

Total Liabilities held for sale $ 242

D. Restructuring and Other Charges, Net

Restructuringandothercharges,netforeachyearinthethree-yearperiodendedDecember31,2020werecomprisedofthefollowing:

2020 2019 2018 Settlementsand/orcurtailmentsrelatedtoretirementbenefits(O) $ 58 $ 119 $ 331Severanceandemployeeterminationcosts 16 51 2Assetimpairments 2 225 18Assetretirementobligations(R) 2 75 5Environmentalremediation(S) 1 69 2Lossondivestitures — 446 —Allowanceonvalue-addedtaxcredits(U) — — 107Powercontractpayments–non-recurring — — 62Other 36 52 48Reversalsofpreviouslyrecordedlayoffandothercosts (11) (6) (48)Restructuringandothercharges,net $ 104 $ 1,031 $ 527

Severanceandemployeeterminationcostswererecordedbasedonapproveddetailedactionplanssubmittedbytheoperatinglocationsthatspecifiedpositionstobeeliminated,benefitstobepaidunderexistingseveranceplans,unioncontractsorstatutoryrequirements,andtheexpectedtimetableforcompletionoftheplans.

2020 Actions. In2020,AlcoaCorporationrecordedRestructuringandothercharges,net,of$104whichwerecomprisedofthefollowingcomponents:$59relatedtosettlementsandcurtailmentsofcertainpensionandotherpostretirementbenefits(seeNoteO);$28(net)forcostsrelatedtothecurtailmentoftheIntalco(Washington)smelter;$20foradditionalcontractcostsrelatedtothecurtailedWenatchee(Washington)smelter;andseveralotherinsignificantitems.

InApril2020,aspartoftheCompany’sportfolioreview,AlcoaCorporationannouncedthecurtailmentoftheremaining230kmtofuncompetitivesmeltingcapacityattheIntalco(Washington)smelteramiddecliningmarketconditions.Thefullcurtailment,whichincluded49kmtofearlier-curtailedcapacity,wascompletedduringthethirdquarterof2020.The$28netrestructuringchargerecordedduring2020wascomprisedof$13forseveranceandemployeeterminationcostsfromtheseparationofapproximately685employees,$16forcontractterminationcosts,andanetcurtailmentgainof$1relatedtotheU.S.hourlydefinedbenefitpensionandretireelifeplans(seeNoteO).AtDecember31,2020,theseparationofemployeesandrelatedseveranceandemployeeterminationcostpaymentsassociatedwiththisprogramwereessentiallycompletewithapproximately$11ofpaymentsmadeagainsttheseveranceandemployeeterminationcostreserve.Paymentsrelatedtothecontractterminationcostswere$5during2020.Additionalcontractterminationcostsrelatedtotake-or-payagreementsmayrecurduringthecurtailmentperiod.

InOctober2020,theCompanymadethedecisiontocurtailthe228kmtofuncompetitiveannualsmeltingcapacityattheSanCipriánsmelterinSpain.FollowingAlcoa’sannouncementtocurtailtheSanCipriánsmelter,theworkers’representativeschallengedthecollectivedismissalprocessinalegalproceedingbeforetheHighCourtofJusticeofGalicia,whichruledinfavoroftheworkersonDecember17,2020.Asaresult,theCompanysuspendeditsplanstocurtailtheSanCipriánsmelter,filedanappealoftherulingandisevaluatingnextstepsforthesmelter.Asaresult,inthefourthquarter2020,theCompanydidnotincurtheapproximately$35to$40itpreviouslyannouncedasanexpectedchargeforemployeerelatedcostsassociatedwiththecurtailmentandcollectivedismissalprocess.

2019 Actions. In2019,AlcoaCorporationrecordedRestructuringandothercharges,net,of$1,031whichwerecomprisedofthefollowingcomponents:$319relatedtothedivestitureofAlcoaCorporation’sinterestintheMa’adenRollingCompany(seebelow);$274forexitscostsrelatedtoadecisiontopermanentlycloseanddemolishthePointComfortaluminarefinery(seebelow);$235forcostsrelatedtothesmeltercurtailmentandsubsequentdivestitureoftheAvilésandLaCoruñaaluminumfacilitiesinSpain(seebelow);$119relatedtothesettlementand/orcurtailmentofcertainpensionandotherpostretirementbenefits;$37foremployeeterminationandseverancecostsrelatedtotheimplementationofthenewoperatingmodel(seebelow);$9forclosurecostsrelatedtoacoalmine;and$38fornetchargesrelatedtovariousotheritems.

InDecember2019,AlcoaCorporationannouncedthepermanentclosureofthePointComfort(Texas)aluminarefinery.Restructuringchargesrecordedin2019relatedtotheclosureincludedassetimpairmentsof$129,assetretirementobligationsof$72,environmentalremediationcostsof$69,andseverancecostsof$4forthelayoffofapproximately40employees.Additionally,achargeof$2forthewritedownofremaininginventoriestotheirnetrealizablevaluewasrecordedinCostofgoodssoldontheaccompanyingStatementofConsolidatedOperations.Changesintheseverancereserveduring2020includedareductionfromcashpaymentsof$2andareversalof$1resultingfromchangesinemployeeseverancebenefitelections.AtDecember31,2020,theseparationsassociatedwiththisprogramwereessentiallycomplete.

InSeptember2019,AlcoaCorporationannouncedtheimplementationofanewoperatingmodelthatresultedinaleaner,moreintegrated,operator-centricorganization.EffectiveNovember1,2019,thenewoperatingmodeleliminatedthebusinessunitstructure,consolidatedsales,procurementandothercommercialcapabilitiesatanenterpriselevel,andstreamlinedtheExecutiveTeam.ThenewstructurereducedoverheadwiththeintentionofpromotingoperationalandcommercialexcellenceandincreasingconnectivitybetweentheCompany’splantsandleadership.Asaresultofthenewoperatingmodel,AlcoaCorporationrecordedachargeof$37relatedtoemployeeterminationandseverancecostsforapproximately260employeescompany-wide.ASeveranceandemployeeterminationcostreserveof$27remainedatDecember31,2019.Inadditiontotheemployeesseparatedundertheprogram,theCompanyeliminated60positionsasopenrolesorretirementswerenotreplaced.AtDecember31,2020,theseparationsassociatedwiththisprogramwereessentiallycompleteandrelatedcashpaymentsof$25weremadeduring2020.

InJanuary2019,AlcoaCorporationreachedanagreementwiththeworkers’representativesattheAvilésandLaCoruña(Spain)aluminumfacilitiesaspartofthecollectivedismissalprocessannouncedinOctober2018andcurtailedthesmeltersatthesetwolocations,withacombinedremainingoperatingcapacityof124kmt,inFebruary2019.InJuly2019,AlcoacompletedthedivestitureoftheAvilésandLaCoruñaaluminumfacilitiestothebuyer(seeNoteC).

Restructuringandothercharges,net,relatedtothecurtailmentandcollectivedismissalprocessoftheSpanishfacilitiesincludedassetimpairmentsof$80,severanceandemployee-relatedcostsof$20,andcontractterminationcostsof$8.Additionalchargesincluded$16recordedinCostofgoodssold,primarilyforthewritedownofremaininginventoriestotheirnetrealizablevalue,and$2inmiscellaneouschargesrecordedinSelling,generaladministrative,andotherexpensesontheaccompanyingStatementofConsolidatedOperations.

Restructuringandothercharges,netrelatedtothedivestitureoftheSpanishfacilitiestotaled$127fortheyearendedDecember31,2019,forfinancialcontributionsofupto$95tothebuyerpertheagreement,anetchargeof$32tomeetaworkingcapitalcommitmentandwrite-offtheremainingnetbookvalueofthefacilities’assets.FortheyearendedDecember31,2019,netcashoutflowsrelatedtothetransactionwere$47withtotalfinancialcontributionsof$68remainingatDecember31,2019.During2020,financialcontributionsof$38weremadetothebuyerandareclassifiedasCashusedforfinancingactivitiesontheCompany’sStatementofConsolidatedCashFlows.Inaccordancewiththetermsoftheagreement,paymentsagainsttherestructuringreservecouldbemadethroughthefourthquarterof2021,andaportionoftheremainingpaymentscouldbeoffsetbycarbonemissioncreditsmonetizedbythebuyer.

InDecember2009,AlcoaCorporationinvestedinajointventurerelatedtotheownershipandoperationofanintegratedaluminumcomplex(bauxitemine,aluminarefinery,aluminumsmelter,androllingmill)intheSaudiArabia.Thejointventureisowned74.9%byMa’adenand25.1%byAlcoaCorporation,andoriginallyconsistedofthreeseparatecompaniesasfollows:MBAC,MAC,andMRC.AlcoaCorporationaccountsforitsinvestmentinthejointventureundertheequitymethodasoneintegratedinvestmentasset,consistentwiththetermsofthejointventureagreement.

InJune2019,AlcoaCorporationandMa’adenamendedthejointventureagreementthatgovernstheoperationsofeachofthethreecompaniesthatcomprisethejointventure.Underthetermsoftheamendedagreement:

• AlcoaCorporationmadeacontributiontoMRCintheamountof$100,alongwithMa’aden’searliercapitalcontributionof$100,tomeetcurrentMRCcashrequirements,includingpayingcertainamountsowedbyMRCtoMACandAlcoaCorporation;

• AlcoaCorporationandMa’adenconsentedtothewrite-offof$235ofMRC’sdelinquentpayablestoMAC; • AlcoaCorporationtransferredits25.1%interestinMRCtoMa’adenand,asaresult,hasnofurtherdirectorindirectequityinterestinMRC; • AlcoaCorporationisreleasedfromallfutureMRCobligations,includingAlcoaCorporation’ssponsorsupportof$296ofMRCdebt(seeNoteS)and

itsshareofanyfutureMRCcashrequirements;and, • AlcoaCorporationandMa’adenfurtherdefinedMBACandMACshareholderrights,includingthetiminganddeterminationoftheamountofdividend

paymentsofexcesscashtothejointventurepartnersfollowingrequireddistributionstothecommerciallendersofMBACandMAC;amongothermatters.

TheamendmentalsodefinesOctober1,2021asthedateafterwhichAlcoaCorporationispermittedtosellallofitssharesinbothMBACandMACcollectively,forwhichMa’adenhasarightoffirstrefusal.TheagreementfurtheroutlinesthatAlcoaCorporation’scalloptionandMa’aden’sputoption,relatingtoadditionalinterestsinthejointventure,areexercisableforaperiodofsix-monthsafterOctober1,2021.

Thepartieswillmaintaintheircommercialrelationshipandaspartoftheagreement,AlcoaCorporationprovidedsales,logistics,andcustomertechnicalservicessupportforMRCproductsfortheNorthAmericancansheetmarketthroughDecember2020.TheCompanywillretainits25.1%minorityinterestinMBACandMAC,andMa’adenwillcontinuetoowna74.9%interest.

The$319restructuringchargeresultingfromtheMRCdivestitureincludedthewrite-offofAlcoaCorporation’sinvestmentinMRCof$161,thecashcontributionsdescribedaboveof$100,andthewrite-offofAlcoaCorporation’sshareofMRC’sdelinquentpayablesduetoMACof$59thatwereforgivenaspartofthistransaction,whichwerepartiallyoffsetbyagainof$1fromthewrite-offofthefairvalueofdebtguarantee.

2018 Actions.In2018,AlcoaCorporationrecordedRestructuringandothercharges,netof$527,whichwerecomprisedofthefollowingcomponents:$331(net)relatedtosettlementsandcurtailmentsofcertainpensionandotherpostretirementbenefits(seeNoteO);$107toestablishanallowanceoncertainvalue-addedtaxcreditsrelatedtotheCompany’soperationsinBrazil(seeNoteU);$86forcostsrelatedtotheenergysupplyagreementatthecurtailedWenatchee(Washington)smelter,including$73associatedwith2018managementdecisionnottorestartthefullycurtailedWenatcheesmelterwithinthetermprovidedintheenergysupplyagreement;a$15netbenefitforsettlementofmattersrelatedtothePortovesme(Italy)smelter;andan$18netchargeforotheritems.

InJune2018,managementdecidednottorestartthefullycurtailedWenatcheesmelterwithinthetermprovidedintherelatedelectricitysupplyagreement.AlcoaCorporationwasthereforerequiredtomakea$62paymenttotheenergysupplierundertheprovisionsoftheagreement.Additionally,managementdecidedtopermanentlycloseone(38kmt)ofthefourpotlinesatthissmelter.Thispotlinehasnotoperatedsince2001andtheinvestmentsneededtorestartthislinewerecostprohibitive.Theremainingthreecurtailedpotlineshaveacapacityof146kmt.Inconnectionwiththesedecisions,theCompanyrecognizedachargeof$73,composedofthe$62payment,$10forassetimpairments,and$1forassetretirementobligationstriggeredbythedecisiontodecommissionthepotline.

AlcoaCorporationdoesnotincludeRestructuringandothercharges,netintheresultsofitsreportablesegments.Theimpactofallocatingsuchchargestosegmentresultswouldhavebeenasfollows:

2020 2019 2018 Bauxite $ 1 $ 5 $ 1Alumina 5 272 112Aluminum 53 611 102

Segmenttotal 59 888 215Corporate 45 143 312TotalRestructuringandothercharges,net $ 104 $ 1,031 $ 527

Activityandreservebalancesforrestructuringchargeswereasfollows:

Severanceand

employeetermination

costs Othercosts Total

Balances at December 31, 2017 $ 11 $ 34 $ 45Restructuringcharges,net 2 109 111Cashpayments (7) (95) (102)Reversalsandother (1) (6) (7)Balances at December 31, 2018 5 42 47Restructuringcharges,net 51 161 212Cashpayments (19) (99) (118)Reversalsandother (2) (2) (4)Balances at December 31, 2019 35 102 137Restructuringcharges,net 16 36 52Cashpayments (41) (79) (120)Reversalsandother (4) (2) (6)Balances at December 31, 2020 $ 6 $ 57 $ 63

TheactivityandreservebalancesincludeonlyRestructuringandothercharges,netthatimpactthereservesforSeveranceandemployeeterminationcostsandOthercosts.Restructuringandothercharges,netthataffectedotherliabilityaccountssuchasenvironmentalobligations(seeNoteS),assetretirementobligations(seeNoteR),andpensionandotherpostretirementreserves(seeNoteO)areexcludedfromtheaboveactivityandbalances.Reversalsandotherincludereversalsofpreviouslyrecordedliabilitiesandforeigncurrencytranslationimpacts.

ThecurrentportionofthereservebalanceisreflectedinOthercurrentliabilitiesontheConsolidatedBalanceSheetandthenoncurrentportionofthereservebalanceisreflectinOthernoncurrentliabilitiesanddeferredcreditsontheConsolidatedBalanceSheet.ThenoncurrentportionofthereserveatDecember31,2020was$1.ThenoncurrentportionofthereserveatDecember31,2019was$13,ofwhich$12relatedtofinancialcontributionstothebuyeroftheSpanishfacilities.

E. Segment and Related Information

Segment Information

AlcoaCorporationisaproducerofbauxite,alumina,andaluminumproducts(primaryandflat-rolled).TheCompanyhasthreeoperatingandreportablesegments,whichareorganizedbyproductonaglobalbasis:Bauxite,Alumina,andAluminum.SegmentperformanceunderAlcoaCorporation’smanagementreportingsystemisevaluatedbasedonanumberoffactors;however,theprimarymeasureofperformanceistheAdjustedEBITDA(Earningsbeforeinterest,taxes,depreciation,andamortization)ofeachsegment.TheCompanycalculatessegmentAdjustedEBITDAasTotalsales(third-partyandintersegment)minusthefollowingitems:Costofgoodssold;Selling,generaladministrative,andotherexpenses;andResearchanddevelopmentexpenses.AlcoaCorporation’sAdjustedEBITDAmaynotbecomparabletosimilarlytitledmeasuresofothercompanies.Thechiefoperatingdecisionmakerfunctionregularlyreviewsthefinancialinformation,includingSalesandAdjustedEBITDA,ofthesethreeoperatingsegmentstoassessperformanceandallocateresources.

Segmentassetsinclude,amongothers,customerreceivables(third-partyandintersegment),inventories,properties,plants,andequipment,andequityinvestments.TheaccountingpoliciesofthesegmentsarethesameasthosedescribedintheSummaryofSignificantAccountingPolicies(seeNoteB).Transactionsamongsegmentsareestablishedbasedonnegotiationamongtheparties.DifferencesbetweensegmenttotalsandAlcoaCorporation’sconsolidatedtotalsforlineitemsnotreconciledareinCorporate.

ThefollowingaredetaileddescriptionsofAlcoaCorporation’sreportablesegments:

Bauxite.ThissegmentrepresentstheCompany’sglobalbauxiteminingoperations.Aportionofthissegment’sproductionrepresentstheofftakefromequitymethodinvestmentsinBrazilandGuinea,aswellasAWAC’sshareofbauxiteproductionrelatedtoanequityinvestmentinSaudiArabia.ThebauxiteminedbythissegmentissoldprimarilytointernalcustomerswithintheAluminasegment;aportionofthebauxiteissoldtoexternalcustomers.BauxiteminedbythissegmentandusedinternallyistransferredtotheAluminasegmentatnegotiatedtermsthatareintendedtoapproximatemarketprices;salestothird-partiesareconductedonacontractbasis.Generally,thissegment’ssalesaretransactedinU.S.dollarswhilecostsandexpensesaretransactedinthelocalcurrencyoftherespectiveoperations,whicharetheAustraliandollarandtheBrazilianreal.MostoftheoperationsthatcomprisetheBauxitesegmentarepartofAWAC(seePrinciplesofConsolidationinNoteA).

Alumina.ThissegmentrepresentstheCompany’sworldwiderefiningsystem,whichprocessesbauxiteintoalumina.Thealuminaproducedbythissegmentissoldprimarilytointernalandexternalaluminumsmeltercustomers;aportionofthealuminaissoldtoexternalcustomerswhoprocessitintoindustrialchemicalproducts.Approximatelytwo-thirdsofAlumina’sproductionissoldundersupplycontractstothirdpartiesworldwide,whiletheremainderisusedinternallybytheAluminumsegment.AluminaproducedbythissegmentandusedinternallyistransferredtotheAluminumsegmentatprevailingmarketprices.Aportionofthissegment’sthird-partysalesarecompletedthroughtheuseofaluminatraders.Generally,thissegment’ssalesaretransactedinU.S.dollarswhilecostsandexpensesaretransactedinthelocalcurrencyoftherespectiveoperations,whicharetheAustraliandollar,theBrazilianreal,theU.S.dollar,andtheeuro.MostoftheoperationsthatcomprisetheAluminasegmentarepartofAWAC(seePrinciplesofConsolidationinNoteA).ThissegmentalsoincludesAWAC’s25.1%ownershipinterestinaminingandrefiningjointventurecompanyinSaudiArabia(seeNoteH).

Aluminum.ThissegmentconsistsoftheCompany’s(i)worldwidesmeltingandcasthousesystem,whichprocessesaluminaintoprimaryaluminum,(ii)portfolioofenergyassetsinBrazil,Canada,andtheUnitedStates,and(iii)rollingmillintheUnitedStates.

TheenergyassetssupplypowertoexternalcustomersinBraziland,toalesserextent,intheUnitedStates,andinternalcustomersintheAluminum(CanadiansmeltersandWarrick(Indiana)smelterandrollingmill)andAluminasegments(Brazilianrefineries).

Therollingmillproducesaluminumsheetprimarilysolddirectlytocustomersinthepackagingmarketfortheproductionofaluminumcans(beverageandfood).Additionally,fromtheSeparationDatethroughtheendof2018,AlcoaCorporationhadatollingarrangement(contractuallyendedonDecember31,2018)withParentCowherebyParentCo’srollingmillinTennesseeproducedcansheetproductsforcertaincustomersoftheCompany’srollingoperations.AlcoaCorporationsuppliedalloftherawmaterialstotheTennesseefacilityandpaidParentCoforthetollingservice.OnNovember30,2020,AlcoaannouncedanagreementtosellitsrollingmilltoKaiser.Thesaleisexpectedtoclosebytheendofthefirstquarterof2021,subjecttocustomaryclosingconditions(seeNoteC).

ThissegmentalsoincludesAlcoaCorporation’s25.1%ownershipinterestinbothasmelting(throughfullyear2020)androllingmill(throughthesecondquarterof2019)jointventurecompanyinSaudiArabia(seeNoteH).

Theoperatingresults,capitalexpenditures,andassetsofAlcoaCorporation’sreportablesegmentswereasfollows:

Bauxite Alumina Aluminum Total 2020 Sales:

Third-partysales $ 272 $ 2,627 $ 6,365 $ 9,264Intersegmentsales 941 1,268 12 2,221

Totalsales $ 1,213 $ 3,895 $ 6,377 $ 11,485SegmentAdjustedEBITDA $ 495 $ 497 $ 325 $ 1,317Supplementalinformation:

Depreciation,depletion,andamortization $ 135 $ 172 $ 322 $ 629Equityloss — (23) (7) (30)

2019 Sales:

Third-partysales $ 297 $ 3,250 $ 6,803 $ 10,350Intersegmentsales 979 1,561 17 2,557

Totalsales $ 1,276 $ 4,811 $ 6,820 $ 12,907SegmentAdjustedEBITDA $ 504 $ 1,097 $ 25 $ 1,626Supplementalinformation:

Depreciation,depletion,andamortization $ 120 $ 214 $ 346 $ 680Equityincome(loss) — 6 (49) (43)

2018 Sales:

Third-partysales $ 271 $ 4,215 $ 8,829 $ 13,315Intersegmentsales 944 2,101 18 3,063

Totalsales $ 1,215 $ 6,316 $ 8,847 $ 16,378SegmentAdjustedEBITDA $ 426 $ 2,373 $ 451 $ 3,250Supplementalinformation:

Depreciation,depletion,andamortization $ 111 $ 197 $ 394 $ 702Equityincome(loss) — 32 (38) (6)

2020 Assets:

Capitalexpenditures $ 127 $ 103 $ 111 $ 341Equityinvestments 222 264 546 1,032Totalassets 1,468 4,333 6,214 12,015

2019 Assets:

Capitalexpenditures $ 53 $ 137 $ 152 $ 342Equityinvestments 212 293 587 1,092Totalassets 1,434 4,303 6,588 12,325

Thefollowingtablesreconcilecertainsegmentinformationtoconsolidatedtotals:

2020 2019 2018 Sales:

Totalsegmentsales $ 11,485 $ 12,907 $ 16,378Eliminationofintersegmentsales (2,221) (2,557) (3,063)Other 22 83 88

Consolidatedsales $ 9,286 $ 10,433 $ 13,403

2020 2019 2018

Net(loss)incomeattributabletoAlcoaCorporation: TotalSegmentAdjustedEBITDA $ 1,317 $ 1,626 $ 3,250Unallocatedamounts:

Transformation(1) (45) (7) (3)Intersegmenteliminations (8) 150 (8)Corporateexpenses(2) (102) (101) (96)Provisionfordepreciation,depletion,andamortization (653) (713) (733)Restructuringandothercharges,net(D) (104) (1,031) (527)Interestexpense(U) (146) (121) (122)Otherexpenses,net(U) (8) (162) (64)Other(3) (78) (79) (72)

Consolidatedincome(loss)beforeincometaxes 173 (438) 1,625Provisionforincometaxes(Q) (187) (415) (732)Netincomeattributabletononcontrollinginterest (156) (272) (643)

Consolidatednet(loss)incomeattributabletoAlcoaCorporation $ (170) $ (1,125) $ 250

includedintheAdjustedEBITDAofthereportablesegments.

December 31, 2020 2019 Assets:

Totalsegmentassets $ 12,015 $ 12,325Eliminationofintersegmentreceivables (193) (170)Unallocatedamounts:

Cashandcashequivalents 1,607 879Corporatefixedassets,net 453 519Corporategoodwill 141 145Deferredincometaxes 655 642Other 182 291

Consolidatedassets $ 14,860 $ 14,631

Product Information

AlcoaCorporationhasfiveproductdivisionsasfollows:

Bauxite—Bauxiteisareddishclayrockthatisminedfromthesurfaceoftheearth’sterrain.Thisoreisthebasicrawmaterialusedtoproducealuminaandistheprimarysourceofaluminum.

Alumina—Aluminaisanoxidethatisextractedfrombauxiteandisthebasicrawmaterialusedtoproduceprimaryaluminum.Thisproductcanalsobeconsumedfornon-metallurgicalpurposes,suchasindustrialchemicalproducts.

Primary aluminum—Primaryaluminumismetalintheformofacommonalloyingot(e.g.,t-bar,sow,standardingot)oravalue-addingot(e.g.,billet,rod,andslab).Theseproductsaresoldprimarilytocustomersthatproduceproductsforthetransportation,buildingandconstruction,packaging,wire,andotherindustrialmarkets.

Flat-rolled aluminum—Flat-rolledaluminumismetalintheformofsheet,whichissoldprimarilytocustomersthatproducebeverageandfoodcans,includingbody,tab,andendstock.

Energy—Energyisthegenerationofelectricity,whichissoldinthewholesalemarkettotraders,largeindustrialconsumers,distributioncompanies,andothergenerationcompanies.

ThefollowingtablerepresentsthegeneralcommercialprofileoftheCompany’sBauxite,Alumina,Primaryaluminum,andFlat-rolledaluminumproductdivisions(seetextbelowtableforEnergy):Product division Pricing components Shipping terms(4) Payment terms(5)

Bauxite Negotiated FOB/CIF LCSightAlumina: Smelter-grade API(1)/spot FOB LCSight/CAD/Net30daysNon-metallurgical Negotiated FOB/CIF Net30days

Primaryaluminum: Commonalloyingot LME+Regionalpremium(2) DAP/CIF Net30to45daysValue-addingot LME+Regionalpremium+Product

premium(2)DAP/CIF Net30to45days

Flat-rolledaluminum Metal+Conversion(3) DAP Negotiated(1) API(AluminaPriceIndex)isapricingmechanismthatiscalculatedbytheCompanybasedontheweightedaverageofapriormonth’sdailyspotprices

publishedbythefollowingthreeindices:CRUMetallurgicalGradeAluminaPrice;PlattsMetalsDailyAluminaPAXPrice;andMetalBulletinNon-FerrousMetalsAluminaIndex.

(2) LME(LondonMetalExchange)isagloballyrecognizedexchangeforcommoditytrading,includingaluminum.TheLMEpricingcomponentrepresentstheunderlyingbasemetalcomponent,basedonquotedpricesforaluminumontheexchange.TheregionalpremiumrepresentstheincrementalpriceoverthebaseLMEcomponentthatisassociatedwiththephysicaldeliveryofmetaltoaparticularregion(e.g.,theMidwestpremiumformetalsoldintheUnitedStates).Theproductpremiumrepresentstheincrementalpriceforreceivingphysicalmetalinaparticularshape(e.g.,billet,rod,slab,etc.)oralloy.

(3) Metalrepresentstheunderlyingbasemetalcomponentplusaregionalpremium(seefootnote2).Conversionrepresentstheincrementalpriceoverthemetalpricecomponentthatisassociatedwithconvertingprimaryorscrapaluminumintosheet.

(4) CIF(cost,insurance,andfreight)meansthattheCompanypaysfortheseitemsuntiltheproductreachesthebuyer’sdesignateddestinationpointrelatedtotransportationbyvessel.DAP(deliveredatplace)meansthesameasCIFrelatedtoallmethodsoftransportation.FOB(freeonboard)meansthattheCompanypaysforcosts,insurance,andfreightuntiltheproductreachestheseller’sdesignatedshippingpoint.

(5) ThenetnumberofdaysmeansthatthecustomerisrequiredtoremitpaymenttotheCompanyfortheinvoiceamountwithinthedesignatednumberofdays.LCSightisaletterofcreditthatispayableimmediately(usuallywithinfivetotenbusinessdays)afterasellermeetstherequirementsoftheletterofcredit(i.e.shippingdocumentsthatevidencethesellerperformeditsobligationsasagreedtowithabuyer).CAD(cashagainstdocuments)isapaymentarrangementinwhichasellerinstructsabanktoprovideshippingandtitledocumentstothebuyeratthetimethebuyerpaysinfulltheaccompanyingbillofexchange.

FortheCompany’sEnergyproductdivision,salesofelectricityarebasedoncurrentmarketprices.Electricityisprovidedtocustomersondemandthroughanationalorregionalpowergrid;thecustomersimultaneouslyreceivesandconsumestheelectricity.Paymenttermsaregenerallywithin10daysrelatedtotheprevious30daysofelectricityconsumption.

ThefollowingtabledetailsAlcoaCorporation’sThird-partysalesbyproductdivision:

2020 2019 2018 Sales:

Primaryaluminum $ 5,190 $ 5,426 $ 6,787Alumina 2,624 3,246 4,209Flat-rolledaluminum 1,115 1,220 1,884Bauxite 238 276 254Energy 141 290 335Other (22) (25) (66)

$ 9,286 $ 10,433 $ 13,403

Otherincludesrealizedgainsandlossesrelatedtoembeddedderivativeinstrumentsdesignatedascashflowhedgesofforwardsalesofaluminum(seeNoteP).

Geographic Area Information

GeographicinformationforThird-partysaleswasasfollows(baseduponthecountrywherethepointofsaleoriginated):

2020 2019 2018 Sales:

UnitedStates(1) $ 4,246 $ 4,606 $ 5,887Spain(2) 2,766 3,077 3,806Australia 1,884 2,249 2,930Brazil 346 428 498Canada 31 5 216Other 13 68 66

$ 9,286 $ 10,433 $ 13,403

(1) SalesofaportionofthealuminafromrefineriesinAustraliaandBrazilandmostofthealuminumfromsmeltersinCanadaoccurredintheUnitedStates.(2) SalesofthealuminumproducedfromsmeltersinIcelandandNorway,aswellastheoff-takerelatedtoaninterestintheSaudiArabiajointventure(see

NoteH),occurredinSpain.

Geographicinformationforlong-livedassetswasasfollows(baseduponthephysicallocationoftheassets):December 31, 2020 2019 Long-livedassets:

Australia $ 2,282 $ 2,044Brazil 1,215 1,596Iceland 1,102 1,160UnitedStates 1,009 1,491Canada 1,002 1,047Norway 357 365Spain 218 209Other 5 4

$ 7,190 $ 7,916

F. Earnings Per Share

Basicearningspershare(EPS)amountsarecomputedbydividingNet(loss)incomeattributabletoAlcoaCorporationbytheaveragenumberofcommonsharesoutstanding.DilutedEPSamountsassumetheissuanceofcommonstockforallpotentiallydilutiveshareequivalentsoutstanding.

TheshareinformationusedtocomputebasicanddilutedEPSattributabletoAlcoaCorporationcommonshareholderswasasfollows(inmillions):

2020 2019 2018 Averagesharesoutstanding—basic 186 185 186Effectofdilutivesecurities:

Stockoptions — — 1Stockunits — — 2

Averagesharesoutstanding—diluted 186 185 189

In2020,basicaveragesharesoutstandinganddilutedaveragesharesoutstandingwerethesamebecausetheeffectofpotentialsharesofcommonstockwasanti-dilutive.HadAlcoageneratednetincomein2020,onemillioncommonshareequivalentsrelatedtofivemillionoutstandingstockunitsandstockoptionscombinedwouldhavebeenincludedindilutedaveragesharesoutstandingfortherespectiveperiod.OptionstopurchasetwomillionsharesofcommonstockoutstandingatDecember31,2020hadaweightedaverageexercisepriceof$26.85persharewhichwasgreaterthantheaveragemarketpricepershareofAlcoaCorporation’scommonstock.

In2019,basicaveragesharesoutstandinganddilutedaveragesharesoutstandingwerethesamebecausetheeffectofpotentialsharesofcommonstockwasanti-dilutive.HadAlcoageneratednetincomein2019,onemillioncommonshareequivalentsrelatedtofourmillionoutstandingstockunitsandstockoptionscombinedwouldhavebeenincludedindilutedaveragesharesoutstandingfortherespectiveperiod.OptionstopurchasetwomillionsharesofcommonstockoutstandingatDecember31,2019hadaweightedaverageexercisepriceof$32.66persharewhichwasgreaterthantheaveragemarketpricepershareofAlcoaCorporation’scommonstock.

OptionstopurchaseonemillionsharesofcommonstockoutstandingasofDecember31,2018ataweightedaverageexercisepriceof$38.67persharewerenotincludedinthecomputationofdilutedEPSbecausetheexercisepricesoftheseoptionsweregreaterthantheaveragemarketpricepershareofAlcoaCorporation’scommonstock.

G. Accumulated Other Comprehensive Loss

ThefollowingtabledetailstheactivityofthethreecomponentsthatcompriseAccumulatedothercomprehensivelossforbothAlcoaCorporation’sshareholdersandnoncontrollinginterest:

Alcoa Corporation Noncontrolling interest 2020 2019 2018 2020 2019 2018

Pension and other postretirement benefits (O) Balanceatbeginningofperiod $ (2,282) $ (2,283) $ (2,786) $ (56) $ (46) $ (47)Othercomprehensive(loss)income:

Unrecognizednetactuariallossandpriorservicecost/benefit (545) (309) 19 (19) (14) (3)Taxbenefit(expense) 31 28 (8) 3 — —

TotalOthercomprehensive(loss)incomebeforereclassifications,netoftax (514) (281) 11 (16) (14) (3)

Amortizationofnetactuariallossandpriorservicecost/benefit(1) 269 299 546 6 5 4Taxexpense(2) (9) (17) (54) (1) (1) —

TotalamountreclassifiedfromAccumulatedothercomprehensiveloss,netoftax(7) 260 282 492 5 4 4

TotalOthercomprehensive(loss)income (254) 1 503 (11) (10) 1Balanceatendofperiod $ (2,536) $ (2,282) $ (2,283) $ (67) $ (56) $ (46) Foreign currency translation Balanceatbeginningofperiod $ (2,160) $ (2,071) $ (1,467) $ (834) $ (810) $ (581)Othercomprehensiveloss(3) (225) (89) (604) (10) (24) (229)Balanceatendofperiod $ (2,385) $ (2,160) $ (2,071) $ (844) $ (834) $ (810) Cash flow hedges (P) Balanceatbeginningofperiod $ (532) $ (211) $ (929) $ 20 $ 31 $ 51Othercomprehensive(loss)income:

Netchangefromperiodicrevaluations (345) (437) 803 (36) 20 (4)Taxbenefit(expense) 74 83 (159) 10 (6) 1

TotalOthercomprehensive(loss)incomebeforereclassifications,netoftax (271) (354) 644 (26) 14 (3)

Netamountreclassifiedtoearnings: Aluminumcontracts(4) 66 44 108 — — —Financialcontracts(5) 15 (43) (37) 6 (35) (24)Foreignexchangecontracts(4) 20 18 6 — — —Interestratecontracts(6) 5 4 — — — —

Sub-total 106 23 77 6 (35) (24)Tax(expense)benefit(2) (11) 10 (3) (1) 10 7

TotalamountreclassifiedfromAccumulatedothercomprehensiveloss,netoftax(7) 95 33 74 5 (25) (17)

TotalOthercomprehensive(loss)income (176) (321) 718 (21) (11) (20)Balanceatendofperiod $ (708) $ (532) $ (211) $ (1) $ 20 $ 31 TotalAccumulatedothercomprehensiveloss $ (5,629) $ (4,974) $ (4,565) $ (912) $ (870) $ (825)(1) Theseamountswereincludedinthecomputationofnetperiodicbenefitcostforpensionandotherpostretirementbenefits.Theamountsrelatedto

settlementsand/orcurtailmentsofcertainpensionandotherpostretirementbenefitsforAlcoaCorporationinclude$55,$116and$330fortheyearsendedDecember31,2020,2019,and2018,respectively.Theamountsrelatedtosettlementsand/orcurtailmentsofcertainpensionandotherpostretirementbenefitsforNoncontrollinginterestinclude$3,$3,and$1fortheyearsendedDecember31,2020,2019,and2018,respectively(seeNoteO).

(2) TheseamountswerereportedinProvisionforincometaxesontheaccompanyingStatementofConsolidatedOperations.(3) Inallperiodspresented,therewerenotaximpactsrelatedtoratechangesandnoamountswerereclassifiedtoearnings.(4) TheseamountswerereportedinSalesontheaccompanyingStatementofConsolidatedOperations.(5) TheseamountswerereportedinCostofgoodssoldontheaccompanyingStatementofConsolidatedOperations.(6) TheseamountswereincludedinOtherexpenses,netontheaccompanyingStatementofConsolidatedOperations.(7) Apositiveamountindicatesacorrespondingchargetoearningsandanegativeamountindicatesacorrespondingbenefittoearnings.

H. InvestmentsDecember 31, 2020 2019 Equityinvestments $ 1,041 $ 1,103Otherinvestments 10 10 $ 1,051 $ 1,113

Equity Investments.ThefollowingtablesummarizesinformationofAlcoaCorporation’sequityinvestmentsasofDecember31,2020and2019.In2020,2019,and2018,AlcoaCorporationreceived$44,$39,and$45,respectively,individendsfromtheseequityinvestments.TheCompanydivesteditsinterestintheMa’adenRollingCompanyinJune2019(seebelow).Eachoftheinvesteeseitherownsthefacilitylistedorhasanownershipinterestinanentitythatownsthefacilitylisted:

Investee Country Nature of investment Income Statement Location

of Equity Earnings Ownership

interest Ma’adenAluminumCompany SaudiArabia Aluminumsmelterandcasthouse Otherexpenses,net 25.1% Ma’adenBauxiteandAluminaCompany SaudiArabia Bauxitemineandaluminarefinery Otherexpenses,net 25.1% HalcoMining,Inc. Guinea Bauxitemine Costofgoodssold 45% EnergéticaBarraGrandeS.A. Brazil Hydroelectricgenerationfacility Costofgoodssold 42.18% PechineyReynoldsQuebec,Inc. Canada Aluminumsmelter Costofgoodssold 50% ConsorcioSerradoFacão Brazil Hydroelectricgenerationfacility Costofgoodssold 34.97% MineraçãoRiodoNorteS.A. Brazil Bauxitemine Costofgoodssold 18.2% ManicouaganPowerLimitedPartnership Canada Hydroelectricgenerationfacility Costofgoodssold 40% ElysisTMLimitedPartnership Canada Aluminumsmeltingtechnology Otherexpenses,net 48.235%

Saudi Arabia Joint Venture—AlcoaCorporationandMa’adenhavea30-year(fromDecember2009)jointventureshareholdersagreement(automaticextensionforanadditional20years,unlessthepartiesagreeotherwiseorunlessearlierterminated)settingforththetermsforthedevelopment,construction,ownership,andoperationofanintegratedaluminumcomplexinSaudiArabia.TheprojectdevelopedbythejointventureconsistsofabauxiteminefromtheAlBa’ithabauxitedepositinthenorthernpartofSaudiArabia,analuminarefinery,aprimaryaluminumsmelter,andanaluminumrollingmill.

Thejointventureisowned74.9%byMa’adenand25.1%byAlcoaCorporationandoriginallyconsistedofthreeseparatecompaniesasfollows:thebauxitemineandaluminarefinery(MBAC),thesmelter(MAC),andtherollingmill(MRC).InJune2019,AlcoaCorporationandMa’adenamendedthejointventureagreementthatgovernstheoperationsofeachofthethreecompaniesthatcomprisethejointventure.Underthetermsoftheagreement,AlcoaCorporationtransferredits25.1%interestinMRCtoMa’adenand,asaresult,hasnofurtherdirectorindirectequityinterestinMRC.RefertoNoteDforadditionalinformationrelatedtotheagreementamendment.

AnumberofAlcoaCorporationemployeesperformvarioustypesofservicesforthesmelting,rollingmill,andminingandrefiningcompaniesaspartoftheoperationofthefully-integratedaluminumcomplex.AtDecember31,2020and2019,theCompanyhadanaggregateoutstandingreceivableof$5and$8,respectively,fromthesmelting,rollingmill,andminingandrefiningcompaniesforlaborandotheremployee-relatedexpenses.

AsofDecember31,2020and2019,thecarryingvalueofAlcoa’sinvestmentinthisjointventurewas$559and$603,respectively.

ElysisTM Limited Partnership—InJune2018,AlcoaCorporation,RioTintoplc,andtheprovincialgovernmentofQuébec,Canadalaunchedanewjointventure,ElysisTMLimitedPartnership(ElysisTM).Thepurposeofthispartnershipistoadvancelargerscaledevelopmentandcommercializationofitspatent-protectedtechnologythatproducesoxygenandeliminatesalldirectgreenhousegasemissionsfromthetraditionalaluminumsmeltingprocess.AlcoaandRioTintoplc,asgeneralpartners,eachowna48.235%stakeinElysisTM,andtheQuébecprovincialgovernment,asalimitedpartner,ownsa3.53%stake.ThefederalgovernmentofCanadaandAppleInc.,aswellastheQuébecprovincialgovernment,willprovideinitialfinancingtothepartnership.Thetotalplannedcombinedinvestment(equityanddebt)ofthefiveparticipantsinthejointventureis$147(C$188).AlcoaandRioTintoplcwillinvestacombined$43(C$55)inthejointventure,aswellascontributeandlicensecertainintellectualpropertyandpatentstoElysisTM.Todate,theCompanyhascontributed$14(C$18)towarditsinitialinvestmentcommitmentinElysisTM.Inadditiontocashcontributions,Alcoaiscontributing$3inresearchanddevelopmentexpensesannually.TheCompany’sbasisintheinvestmenthasbeenreducedtozeroforitsshareoflossesincurredtodate.Asaresult,theCompanyhas$32inunrecognizedlossesasofDecember31,2020thatwillberecognizeduponadditionalcontributionsintothepartnership.

ThefollowingtablesummarizestheprofitandlossdatafortherespectiveperiodsendedDecember31,asitrelatestoAlcoaCorporation’sequityinvestments.InformationshownfortheSaudiArabiaJointVenturefor2020onlyincludesthecombinedbalancesforMACandMBAC.For2019,theinformationshownfortheSaudiArabiaJointVentureincludesthefullperiodforbothMACandMBAC,andthedataforMRCthroughthedivestituredate.Theinvestmentsaregroupedbased

onthenatureoftheinvestment.TheMininginvestmentsarepartoftheBauxitesegment,whiletheEnergyandOtherinvestmentsareprimarilypartoftheAluminumsegment.

Saudi ArabiaJoint Venture Mining Energy Other

2020 Sales $ 2,279 $ 841 $ 238 $ 316Costofgoodssold 1,829 543 107 283Net(loss)income (108) 46 74 (24)Equityinnet(loss)incomeofaffiliatedcompanies,beforereconcilingadjustments (27) 23 31 (11)Other (7) (1) 2 14AlcoaCorporation’sequityinnet(loss)incomeofaffiliatedcompanies (34) 22 33 3

2019 Sales $ 3,185 $ 846 $ 269 $ 159Costofgoodssold 2,722 580 143 151Net(loss)income (198) 35 107 (28)Equityinnet(loss)incomeofaffiliatedcompanies,beforereconcilingadjustments (50) 16 42 (13)Other 3 5 1 16AlcoaCorporation’sequityinnet(loss)incomeofaffiliatedcompanies (47) 21 43 3

2018 Sales $ 3,986 $ 802 $ 283 $ 120Costofgoodssold 3,334 522 146 110Netincome 9 71 114 16Equityinnetincomeofaffiliatedcompanies,beforereconcilingadjustments 2 23 46 8Other (13) (10) (4) (1)AlcoaCorporation’sequityinnet(loss)incomeofaffiliatedcompanies (11) 13 42 7

ThefollowingtablesummarizesthebalancesheetdataforAlcoaCorporation’sequityinvestments.TheinformationshownfortheSaudiArabiaJointVenturefor2020and2019onlyincludesthecombinedbalancesforMACandMBAC.

Saudi ArabiaJoint Venture Mining Energy Other

2020 Currentassets $ 1,099 $ 143 $ 119 $ 219Noncurrentassets 7,648 828 401 757Currentliabilities 794 206 27 66Noncurrentliabilities 5,347 331 113 62

2019 Currentassets $ 1,109 $ 191 $ 106 $ 181Noncurrentassets 7,931 923 509 761Currentliabilities 677 156 41 59Noncurrentliabilities 5,587 511 87 42

I. Receivables

OnOctober25,2019,awholly-ownedsubsidiaryoftheCompanyenteredintoa$120three-yearrevolvingcreditfacilityagreementsecuredbycertaincustomerreceivables.AlcoaCorporationguaranteedtheperformanceobligationsofthewholly-ownedsubsidiaryunderthefacility;howevernoassets(otherthanthereceivables)werepledgedascollateral.Feespaiduponclosureoftheagreementwereapproximately$1.AtDecember31,2019,therewerenoamountsdrawnoroutstandingrelatedtothiscreditfacility.

OnApril20,2020,theCompanyamendedthisagreementconvertingittoaReceivablesPurchaseAgreementtosellupto$120ofthereceivablespreviouslysecuredbythecreditfacilitywithoutrecourseonarevolvingbasis.Theunsoldportionofthespecifiedreceivablepoolispledgedascollateraltothepurchasingbanktosecurethesoldreceivables.DuringtheyearendedDecember31,2020,noreceivablesweresoldunderthisagreement.

J. InventoriesDecember 31, 2020 2019 Finishedgoods $ 321 $ 305Work-in-process 112 282Bauxiteandalumina 412 446Purchasedrawmaterials 377 453Operatingsupplies 176 158 $ 1,398 $ 1,644

InventoriesrelatedtotheWarrickRollingMillhavebeenexcludedfromtheDecember31,2020balancesintheabovetableduetotheannouncedsaleoftherollingmillandhavebeenreclassifiedtoAssetsheldforsale(seeNoteC).

K. Properties, Plants, and Equipment, NetDecember 31, 2020 2019 Landandlandrights,includingmines $ 320 $ 333Structures(bytypeofoperation):

Bauxitemining 1,119 1,138Aluminarefining 2,474 2,415Aluminumsmeltingandcasting 3,447 3,457Energygeneration 360 440Aluminumrolling — 290Other 350 386

7,750 8,126Machineryandequipment(bytypeofoperation):

Bauxitemining 517 499Aluminarefining 4,180 3,956Aluminumsmeltingandcasting 6,111 6,251Energygeneration 844 879Aluminumrolling — 1,057Other 465 293

12,117 12,935 20,187 21,394Less:accumulateddepreciation,depletion,andamortization 13,332 13,799 6,855 7,595Constructionwork-in-progress 335 321 $ 7,190 $ 7,916

Properties,plantsandequipmentrelatedtotheWarrickRollingMillhavebeenexcludedfromtheDecember31,2020balancesintheabovetableduetotheannouncedsaleoftherollingmillandhavebeenreclassifiedtoAssetsheldforsale(seeNoteC).

L. Goodwill and Other Intangible Assets

Goodwill,whichisincludedinOthernoncurrentassetsontheaccompanyingConsolidatedBalanceSheet,wasasfollows:December 31, 2020 2019 Bauxite $ 2 $ 2Alumina 2 3Aluminum — —Corporate(1) 141 145 $ 145 $ 150

(1) ThecarryingvalueofCorporate’sgoodwillisnetofaccumulatedimpairmentlossesof$742asofbothDecember31,2020and2019.AsofDecember31,

2020,the$141ofgoodwillreflectedinCorporateisallocatedtotwoofAlcoaCorporation’sthreereportablesegments($47toBauxiteand$94toAlumina)forpurposesofimpairmenttesting(seeNoteB).ThisgoodwillisreflectedinCorporateforsegmentreportingpurposesbecauseitisnotincludedinmanagement’sassessmentofperformancebythetworeportablesegments.

ManagementperformedqualitativeassessmentsoftheBauxiteandAluminareportingunitsin2020anddeterminedthatitwasnotmorelikelythatnotthatthefairvalueofeitherreportingunitwaslessthatit*carryingvalue.ManagementlastperformedaquantitativeimpairmenttestfortheBauxitereportingunitin2018andtheAluminareportingunitin2019.Atthetimeofeachquantitativeassessment,theestimatedfairvalueofeachrespectivereportingunitwassubstantiallyinexcessofitscarryingvalue,resultinginnoimpairment.

Otherintangibleassets,whichareincludedinOthernoncurrentassetsontheaccompanyingConsolidatedBalanceSheet,wereasfollows: 2020 2019

December 31,

Grosscarryingamount

Accumulatedamortization

Netcarryingamount

Grosscarryingamount

Accumulatedamortization

Netcarryingamount

Computersoftware $ 236 $ (218) $ 18 $ 240 $ (216) $ 24Patentsandlicenses 25 (8) 17 25 (8) 17Otherintangibles 20 (10) 10 22 (11) 11Totalotherintangibleassets $ 281 $ (236) $ 45 $ 287 $ (235) $ 52

ComputersoftwareconsistsprimarilyofsoftwarecostsassociatedwiththeenterprisebusinesssolutionwithinAlcoatodrivecommonsystemsamongallbusinesses.

AmortizationexpenserelatedtotheintangibleassetsinthetablesabovefortheyearsendedDecember31,2020,2019,and2018was$9,$19,and$12,respectively,andisexpectedtobeapproximately$10annuallyfrom2021to2025.

M. Debt

Long-Term Debt.December 31, 2020 2019 6.75%Notes,due2024 $ 750 $ 7507.00%Notes,due2026 500 5005.500%Notes,due2027 750 —6.125%Notes,due2028 500 500Other 6 84Unamortizeddiscountsanddeferredfinancingcosts (41) (34)Total 2,465 1,800Less:amountduewithinoneyear 2 1Long-termdebt,lessamountduewithinoneyear $ 2,463 $ 1,799

Theprincipalamountoflong-termdebtmaturingineachofthenextfiveyearsis$2in2021,$1ineachof2022and2023,$751in2024,and$1in2025.In2019,Otherincludes$77classifiedasLong-termdebtduetoanoptiontoextend.In2020,theinstrumentwasreclassifiedtoShort-termborrowingsduetotheexpectedmaturityin2021andwasincludedinOthercurrentliabilitiesontheaccompanyingConsolidatedBalanceSheet.

144A Debt.InJuly2020,AlcoaNederlandHoldingB.V.(ANHBV),awholly-ownedsubsidiaryofAlcoaCorporation,completedaRule144A(U.S.SecuritiesActof1933,asamended)debtissuancefor$750aggregateprincipalamountof5.500%SeniorNotesdue2027(the“2027Notes”).Thenetproceedsofthisissuancewereapproximately$736reflectingadiscounttotheinitialpurchasersofthe2027Notesaswellasissuancecosts.Thenetproceedswereusedforgeneralcorporatepurposes,includingaddingcashtoitsbalancesheet.Thediscounttotheinitialpurchasers,aswellascoststocompletethefinancing,wasdeferredandisbeingamortizedtointerestexpenseoverthetermofthe2027Notes.Interestonthe2027Notesispaidsemi-annuallyinJuneandDecember,whichcommencedonDecember15,2020.Theindenturecontainscustomaryaffirmativeandnegativecovenantsthataresimilartothoseincludedintheindentureforthe2028Notesdescribedbelow,suchaslimitationsonliens,limitationsonsaleandleasebacktransactions,andaprohibitiononareductionintheownershipofAWACentitiesbelowanagreedlevel.ANHBVhastheoptiontoredeemthe2027Notesonatleast15days,butnotmorethan60days,priornoticetotheholdersofthe2027Notesundermultiplescenarios,including,inwholeorinpart,atanytimeorfromtimetotimeafterJune15,2023,ataredemptionpricespecifiedintheindenture(upto102.750%oftheprincipalamountplusanyaccruedandunpaidinterestineachcase).Also,the2027Notesaresubjecttorepurchaseupontheoccurrenceofachangeincontrolrepurchaseevent(asdefinedintheindenture)atarepurchasepriceincashequalto101%oftheaggregateprincipalamountofthe2027Notesrepurchased,plusanyaccruedandunpaidinterestonthe2027Notesrepurchased.

InMay2018,ANHBV,completedaRule144A(U.S.SecuritiesActof1933,asamended)debtofferingfor$500aggregateprincipalamountof6.125%SeniorNotesdue2028(the“2028Notes”).ANHBVreceived$492innetproceedsfromthedebtofferingreflectingadiscounttotheinitialpurchasersofthe2028Notes.Thenetproceeds,alongwithavailablecashonhand,wereusedtomakediscretionarycontributionstocertainU.S.definedbenefitpensionplans(seeNoteO).Thediscounttotheinitialpurchasers,aswellascoststocompletethefinancing,wasdeferredandisbeingamortizedtointerestexpenseoverthetermofthe2028Notes.Interestonthe2028Notesispaidsemi-annuallyinNovemberandMay,whichcommencedNovember15,2018.

ANHBVhastheoptiontoredeemthe2028Notesonatleast30days,butnotmorethan60days,priornoticetotheholdersofthe2028Notesundermultiplescenarios,including,inwholeorinpart,atanytimeorfromtimetotimeafterMay2023ataredemptionpricespecifiedintheindenture(upto103.063%oftheprincipalamountplusanyaccruedandunpaidinterestineachcase).Also,the2028Notesaresubjecttorepurchaseupontheoccurrenceofachangeincontrolrepurchaseevent(asdefinedintheindenture)atarepurchasepriceincashequalto101%oftheaggregateprincipalamountofthe2028Notesrepurchased,plusanyaccruedandunpaidinterestonthe2028Notesrepurchased.

The2028Notesindentureincludesseveralcustomaryaffirmativecovenants.Additionally,the2028Notesindenturecontainsseveralnegativecovenants,that,subjecttocertainexceptions,includelimitationsonliens,limitationsonsaleandleasebacktransactions,andaprohibitiononareductionintheownershipofAWACentitiesbelowanagreedlevel.Thenegativecovenantsinthe2028Notesindenturearelessextensivethanthoseinthe2024Notesand2026Notes(seebelow)indentureandtheRevolvingCreditFacility(seebelow).Forexample,the2028Notesindenturedoesnotincludealimitationonrestrictedpayments,suchasrepurchasesofcommonstockandshareholderdividends.

InSeptember2016,ANHBVcompletedaRule144A(U.S.SecuritiesActof1933,asamended)debtofferingfor$750aggregateprincipalamountof6.75%SeniorNotesdue2024(the“2024Notes”)and$500aggregateprincipalamountof7.00%SeniorNotesdue2026(the“2026Notes”and,collectivelywiththe2024Notes,the“Notes”).ANHBVreceived$1,228innetproceedsfromthedebtofferingreflectingadiscounttotheinitialpurchasersoftheNotes.ThenetproceedswereusedtomakeapaymenttoParentCotofundthetransferofcertainassetsfromParentCotoAlcoaCorporationinconnectionwiththeSeparationTransaction,andtheremainingnetproceedswereusedforgeneralcorporatepurposes.Thediscounttotheinitialpurchasers,aswellascoststocompletethefinancing,wasdeferredandisbeingamortizedtointerestexpenseovertherespectivetermsoftheNotes.InterestontheNotesispaidsemi-annuallyinMarchandSeptember,whichcommencedMarch31,2017.

ANHBVhastheoptiontoredeemtheNotesonatleast30days,butnotmorethan60days,priornoticetotheholdersoftheNotesundermultiplescenarios,including,inwholeorinpart,atanytimeorfromtimetotimeafterSeptember2019,inthecaseofthe2024Notes,orafterSeptember2021,inthecaseofthe2026Notes,ataredemptionpricespecifiedintheindenture(upto103.375%oftheprincipalamountforthe2024Notesandupto103.500%oftheprincipalamountofthe2026Notes,plusanyaccruedandunpaidinterestineachcase).Also,theNotesaresubjecttorepurchaseupontheoccurrenceofachangeincontrolrepurchaseevent(asdefinedintheindenture)atarepurchasepriceincashequalto101%oftheaggregateprincipalamountoftheNotesrepurchased,plusanyaccruedandunpaidinterestontheNotesrepurchased.

TheNotesindenturecontainsvariousrestrictivecovenantssimilartothosedescribedbelowfortheRevolvingCreditFacility,includingalimitationonrestrictedpayments,with,amongotherexceptions,capacitytopayannualordinarydividends.Undertheindenture,AlcoaCorporationmaydeclareandmakeannualordinarydividendsinanaggregateamountnottoexceed$38ineachoftheNovember1,2016throughDecember31,2017timeperiodandannual2018(nosuchdividendsweremade),$50ineachofannual2019and2020(nosuchdividendsweremadein2019or2020),and$75intheJanuary1,2021throughSeptember30,2026(maturitydateofthe2026Notes)timeperiod,exceptthat50%ofanyunusedamountofthebaseamountinanyofthespecifiedtimeperiodsmaybeusedinthenextsucceedingperiodfollowingtheuseofthebase

amountinsaidtimeperiod.Additionally,therestrictedpaymentsnegativecovenantincludesageneralexceptiontoallowforpotentialfuturetransactionsincrementaltothosespecificallyprovidedforintheNotesindenture.Thisgeneralexceptionprovidesforanaggregateamountofrestrictedpaymentsnottoexceedthegreaterof$250and1.5%ofAlcoaCorporation’sconsolidatedtotalassets.Accordingly,AlcoaCorporationmaymakeannualordinarydividendsinanyfiscalyearbyanaggregateamountofupto$250,assumingnootherrestrictedpaymentshavereduced,inpartorwhole,theavailablelimit.ThelimitsoftherestrictedpaymentsnegativecovenantundertheRevolvingCreditFacilitywouldgoverntheamountofordinarydividendpaymentsAlcoaCorporationcouldmakeinagiventimeframeiftheallowedamountislessthanthelimitsoftherestrictedpaymentsnegativecovenantundertheNotesindenture.

TheNotes,the2027Notes,andthe2028NotesareseniorunsecuredobligationsofANHBVanddonotentitletheholderstoanyregistrationrightspursuanttoaregistrationrightsagreement.ANHBVdoesnotintendtofilearegistrationstatementwithrespecttoresalesoforanexchangeofferfortheNotes,2027Notes,or2028Notes.TheNotes,2027Notes,and2028NotesareguaranteedonaseniorunsecuredbasisbyAlcoaCorporationanditssubsidiariesthatareguarantorsundertheRevolvingCreditFacility(the“subsidiaryguarantors”and,togetherwithAlcoaCorporation,the“guarantors”).Eachofthesubsidiaryguarantorswillbereleasedfromtheirguaranteesupontheoccurrenceofcertainevents,includingthereleaseofsuchguarantorfromitsobligationsasaguarantorundertheRevolvingCreditFacility.

TheNotes,the2027Notes,andthe2028NotesrankequallyinrightofpaymentwitheachotherandwithallofANHBV’Sexistingandfutureseniorunsecuredindebtedness;rankseniorinrightofpaymenttoanyfuturesubordinatedobligationsofANHBV;andareeffectivelysubordinatedtoANHBV’sexistingandfuturesecuredindebtedness,includingundertheRevolvingCreditFacility,totheextentofthevalueofpropertyandassetssecuringsuchindebtedness.TheguaranteesoftheNotes,the2027Notes,andthe2028Notesrankequallyinrightofpaymentwitheachotherandwithalltheguarantors’existingandfutureseniorunsecuredindebtedness;rankseniorinrightofpaymenttoanyfuturesubordinatedobligationsoftheguarantors;andareeffectivelysubordinatedtotheguarantors’existingandfuturesecuredindebtedness,includingundertheRevolvingCreditFacility,totheextentofthevalueofpropertyandassetssecuringsuchindebtedness.

Credit Facilities.AlcoaNorwayANS

OnOctober2,2019,AlcoaNorwayANS,awholly-ownedsubsidiaryofAlcoaCorporation,enteredintoaone-year,multicurrencyrevolvingcreditfacilityagreementforNOK1.3billion(approximately$152)whichisfullyandunconditionallyguaranteedonanunsecuredbasisbyAlcoaCorporation.AlcoaNorwayANSpaysaquarterlycommitmentfeeof0.465%ontheunusedportionoftherevolvingcreditfacility.TheinterestrateonoutstandingNOKloanbalancesis1.55%perannumplustheNorwegianInterbankOfferedRate(NIBOR);theinterestrateonoutstandingUSdollarloansis1.65%perannumplusLIBOR.

OnApril8,2020,AlcoaNorwayANSdrew$100againstthisfacility,andmaydosofromtimetotimeinthefuture,intheordinarycourseofbusiness.Repaymentofthedrawnamount,includinginterestaccruedat2.93%,occurreduponmaturityonJune29,2020.During2019,noamountsweredrawnrelatedtothiscreditfacility.

OnJuly3,2020,AlcoaNorwayANSamendedthemulticurrencyrevolvingcreditfacilityagreementtoalignthetermsoftheagreementwithAmendmentNo.2andAmendmentNo.3oftheRevolvingCreditFacilitydiscussedbelow.

OnSeptember30,2020,AlcoaNorwayANSenteredintoanAmendmentandRestatementAgreement(theA&RAgreement)tothemulticurrencyrevolvingcreditfacilityagreementthatextendedthematurityoneyearfromtheoriginalmaturitydatetoOctober2,2021,unlessfurtherextendedorterminatedearlyinaccordancewiththeprovisionsoftheA&RAgreement.TheA&RAgreementalsoamendedcertainfinancialratiocovenants,specifyingcalculationsbasedupontheresultsofAlcoaNorwayANSratherthanthecalculationsoutlinedintheRevolvingCreditFacility.Additionally,thequarterlycommitmentfeeontheunusedportionofthemulticurrencyrevolvingcreditfacilitywasmodifiedfrom0.465%to0.62%.AtDecember31,2020and2019,AlcoaNorwayANSwasincompliancewithallsuchcovenants.AtDecember31,2020and2019,therewerenoamountsoutstandingrelatedtothiscreditfacility.RevolvingCreditFacilityOnNovember21,2018,AlcoaCorporationandANHBVenteredintoaSecondAmendmentandRestatementAgreementtotheRevolvingCreditAgreementdatedSeptember16,2016andtheAmendmentandRestatementAgreementdatedNovember14,2017,ineachcase,withasyndicateoflendersandissuersnamedtherein,torevisecertaintermsandprovisionsoftheoriginalagreement(theAmendmentandRestatementAgreementasrevisedbytheSecondAmendmentandRestatementAgreement,hereafterreferredtoasthe“RevolvingCreditFacility”or“theFacility”).OnApril21,2020,theCompanyandANHBVenteredintoanamendment(AmendmentNo.2)totheRevolvingCreditFacilitythattemporarilyadjuststheleverageratiorequirementto3.00to1.00from2.5to1.00forthesubsequentfourconsecutivefiscalquarters,beginninginthesecondquarterof2020(theAmendmentPeriod).Theleverageratiorequirement

willreturnto2.50to1.00startinginthesecondquarterof2021.DuringtheAmendmentPeriod,theCompany,ANHBV,andanyrestrictedsubsidiarieswillberestrictedfrommakingcertainrestrictedpaymentsorincurringincrementalsecuredloansundertheRevolvingCreditFacility.OnJune24,2020,theCompanyandANHBVenteredintoanadditionalamendment(AmendmentNo.3)totheRevolvingCreditFacilitythat(i)permanentlyadjuststhecalculationofConsolidatedEBITDA(asdefinedintheRevolvingCreditFacility)byallowingtheaddbackofcertainadditionalnon-cashcosts,and(ii)temporarilyadjusted,fortheremainingfiscalquartersin2020,themannerinwhichConsolidatedCashInterestExpense(asdefinedintheRevolvingCreditFacility)andTotalIndebtednessarecalculatedwithrespecttocertainseniornotesissuancesduringthefiscalyearendedDecember31,2020,inclusiveoftheJuly2020issuancediscussedabove.ANHBVhastheoptiontoextendtheperiodsunderAmendmentNo.3toapplytoeitherorbothfiscalquartersendingMarch31,2021andJune30,2021.However,doingsowouldalsoreducetheborrowingavailabilityundertheRevolvingCreditFacilityduringtherespectivefiscalquartersbyone-thirdofthenetproceedsofanynoteissuancesduringthefiscalyearendedDecember31,2020.Duringthefourthquarterof2020,ANHBVelectedtoextendtheperiodunderAmendmentNo.3throughthequarterendingMarch31,2021,andifANHBVelectstoextendtheperiodthroughJune30,2021,therequestforextensionmustbeprovidedonorpriortoApril1,2021.ElectionbyANHBVtoextendthetemporaryamendmentsresultsinthe2027NotesreducingtheaggregateamountofcommitmentsundertheRevolvingCreditFacilitybyapproximately$245duringtheapplicablefiscalquarters.

TheRevolvingCreditFacilityprovidesa$1,500seniorsecuredrevolvingcreditfacilitytobeusedforworkingcapitaland/orothergeneralcorporatepurposesofAlcoaCorporationanditssubsidiaries.SubjecttothetermsandconditionsoftheRevolvingCreditFacility,ANHBVmayfromtimetotimerequesttheissuanceoflettersofcreditupto$750undertheFacility,subjecttoasublimitof$400foranylettersofcreditissuedfortheaccountofAlcoaCorporationoranyofitsdomesticsubsidiaries.Additionally,ANHBVmayfromtimetotimerequestthateachofthelendersprovideoneormoreadditionaltranchesoftermloansand/orincreasetheaggregateamountofrevolvingcommitments,togetherinanaggregateprincipalamountofupto$500.AtDecember31,2020and2019,lettersofcreditissuedundertheRevolvingCreditFacilitywere$14and$17,respectively.

TheRevolvingCreditFacilityisscheduledtomatureonNovember21,2023,unlessextendedorearlierterminatedinaccordancewiththeprovisionsoftheFacility.ANHBVmaymakeextensionrequestsduringthetermoftheFacility,subjecttothelenderconsentrequirementsspecificallysetforthintheRevolvingCreditFacility.UndertheprovisionsoftheRevolvingCreditFacility,ANHBVwillpayaquarterlycommitmentfeerangingfrom0.200%to0.425%(basedonAlcoaCorporation’sleverageratio)ontheunusedportion.

Amaximumof$750inoutstandingborrowingsundertheRevolvingCreditFacilitymaybedenominatedineuros.Loanswillbearinterestatarateperannumequaltoanapplicablemarginplus,atANHBV’soption,either(a)anadjustedLIBORrateor(b)abaseratedeterminedbyreferencetothehighestof(1)theU.S.primerateaspublishedintheWallStreetJournal,(2)thegreaterofthefederalfundseffectiverateandtheovernightbankfundingrate,plus0.5%,and(3)theonemonthadjustedLIBORrateplus1%perannum.TheapplicablemarginforallloanswillvarybasedonAlcoaCorporation’sleverageratioandwillrangefrom1.50%to2.25%forLIBORloansand0.50%to1.25%forbaserateloans,subjectineachcasetoareductionof25basispointsifAlcoaCorporationattainsatleastaBaa3ratingfromeitherMoody’sInvestorServiceorBBB-ratingfromStandardandPoor’sGlobalRatings.Outstandingborrowingsmaybeprepaidwithoutpremiumorpenalty,subjecttocustomarybreakagecosts.

AllobligationsofAlcoaCorporationoradomesticentityundertheRevolvingCreditFacilityaresecuredby,subjecttocertainexceptions(includingalimitationofpledgesofequityinterestsincertainforeignsubsidiariesto65%,andcertainthresholdswithrespecttorealproperty),afirstprioritylienonsubstantiallyallassetsofAlcoaCorporationandthematerialdomesticwholly-ownedsubsidiariesofAlcoaCorporationandcertainequityinterestsofspecifiednon-U.S.subsidiaries.AllotherobligationsundertheRevolvingCreditFacilityaresecuredby,subjecttocertainexceptions(includingcertainthresholdswithrespecttorealproperty),afirstprioritysecurityinterestinsubstantiallyallassetsofAlcoaCorporation,ANHBV,thematerialdomesticwholly-ownedsubsidiariesofAlcoaCorporation,andthematerialforeignwholly-ownedsubsidiariesofAlcoaCorporationlocatedinAustralia,Brazil,Canada,Luxembourg,theNetherlands,Norway,andSwitzerland,includingequityinterestsofcertainsubsidiariesthatdirectlyholdequityinterestsinAWACentities.However,noAWACentityisaguarantorofanyobligationundertheRevolvingCreditFacilityandnoassetofanyAWACentity,orequityinterestsinanyAWACentity,willbepledgedtosecuretheobligationsundertheRevolvingCreditFacility.AsprovidedintheRevolvingCreditFacility,eachofthementionedcompaniesshallbereleasedfromallobligationsunderthefirstprioritylienand/orfirstprioritysecurityinterestupon(i)AlcoaCorporationattainingatleastaBaa3ratingfromeitherMoody’sInvestorServiceorBBB-ratingfromStandardandPoor’sGlobalRatings,ineachcasewithastableoutlookorbetter,(ii)ANHBVdeliveringtherequiredwrittennotice,and(iii)nodefaultoreventofdefault,asdefinedintheRevolvingCreditFacility,hasoccurredoriscontinuing(thedateonwhichsuchconditionsaremet,the“CollateralReleaseDate”).

TheRevolvingCreditFacilityincludesanumberofcustomaryaffirmativecovenants.Additionally,theRevolvingCreditFacilitycontainsanumberofnegativecovenants(applicabletoAlcoaCorporationandcertainsubsidiariesdescribedasrestricted),that,subjecttocertainexceptions,includelimitationson(amongotherthings):liens;fundamentalchanges;salesofassets;indebtedness(seebelow);enteringintorestrictiveagreements;restrictedpayments(seebelow),includingrepurchasesofcommonstockandshareholderdividends(seebelow);investments(seebelow),loans,advances,guarantees,andacquisitions;transactionswithaffiliates;amendmentofcertainmaterialdocuments;andacovenantprohibitingreductionsintheownershipofAWACentities,andcertainotherspecifiedrestrictedsubsidiariesofAlcoaCorporation,belowanagreedlevel.TheRevolvingCreditFacilityalsoincludesfinancialcovenantsrequiringthemaintenanceofaspecifiedinterestexpensecoverageratioofnotlessthan5.00to1.00,andaleverageratioforanyperiodoffourconsecutivefiscalquartersthatisnotgreaterthan2.50to1.00(2.00to1.00beginningonandsubsequenttotheCollateralReleaseDate,maybeincreasedtoalevelnothigherthan2.25to1.00undercertaincirc*mstances).InaccordancewithAmendmentNo.2,theleverageratiofortheAmendmentPeriodis3.00to1.00.AsofDecember31,2020and2019,maximumadditionalborrowingcapacitytoremainincompliancewiththesecovenantswas$1,322and$1,200,respectively.AsofDecember31,2020and2019,AlcoaCorporationwasincompliancewithallsuchcovenants.

Theindebtedness,restrictedpayments,andinvestmentsnegativecovenantsincludegeneralexceptionstoallowforpotentialfuturetransactionsincrementaltothosespecificallyprovidedforintheRevolvingCreditFacility.Theindebtednessnegativecovenantprovidesforanincrementalamountnottoexceedthegreaterof$1,000and6.0%ofAlcoaCorporation’sconsolidatedtotalassets.Additionally,therestrictedpaymentsnegativecovenantprovidesforanaggregateamountnottoexceed$100andtheinvestmentsnegativecovenantprovidesforanaggregateamountnottoexceed$400,bothofwhichcontaintwoconditionsinwhichtheselimitsmayincrease.First,inanyfiscalyear,thethresholdsfortherestrictedpaymentsandinvestmentsnegativecovenantsincreaseby$250and$200,respectively,iftheconsolidatednetleverageratioisnotgreaterthan1.50to1.00and1.50to1.00,respectively,asoftheendofthepriorfiscalyear.Secondly,inregardstoboththe$100and$250forrestrictedpaymentsandthe$200forinvestments,50%ofanyunusedamountofthesebaseamountsinanyfiscalyearmaybeusedinthenextsucceedingfiscalyear.

Thefollowingdescribesthespecificrestrictedpaymentnegativecovenantforsharerepurchasesandtheapplicationoftherestrictedpaymentsgeneralexception(describedabove)tobothsharerepurchasesandordinarydividendpayments,allsubjecttotherestrictionsapplicableduringtheAmendmentPeriod.

AlcoaCorporationmayrepurchasesharesofitscommonstockpursuanttostockoptionexercisesandbenefitplansinanaggregateamountnottoexceed$25duringanyfiscalyear,exceptthat50%ofanyunusedamountofthebaseamountinanyfiscalyearmaybeusedinthenextsucceedingfiscalyearfollowingtheuseofthebaseamountinsaidfiscalyear.Additionally,asdescribedabove,theRevolvingCreditFacilityprovidesgeneralexceptionstotherestrictedpaymentsnegativecovenantthatwouldallowAlcoaCorporationtoexecutesharerepurchasesforanypurposeinanyfiscalyearbyanaggregateamountofupto$100(seeaboveforconditionsthatprovideforthislimittoincrease),assumingnootherrestrictedpaymentshavereduced,inpartorwhole,theavailablelimit.

Also,anyordinarydividendpaymentsmadebyAlcoaCorporationareonlysubjecttothegeneralexceptionforrestrictedpaymentsdescribedabove.Accordingly,AlcoaCorporationmaymakeannualordinarydividendsinanyfiscalyearbyanaggregateamountofupto$100(seeaboveforconditionsthatprovideforthislimittoincrease),assumingnootherrestrictedpaymentshavereduced,inpartorwhole,theavailablelimit.ThelimitsoftherestrictedpaymentsnegativecovenantundertheNotesindenture(see144ADebtabove)wouldgoverntheamountofordinarydividendpaymentsAlcoaCorporationcouldmakeinagiventimeframeiftheallowedamountislessthanthelimitsoftherestrictedpaymentsnegativecovenantundertheRevolvingCreditFacility.

TheRevolvingCreditFacilitycontainscustomaryeventsofdefault,includingwithrespecttoafailuretomakepaymentsundertheRevolvingCreditFacility,cross-defaultandcross-judgmentdefault,andcertainbankruptcyandinsolvencyevents.

TherewerenoborrowingsoutstandingatDecember31,2020and2019,andnoamountswereborrowedduring2020and2019undertheRevolvingCreditFacility.

N. Preferred and Common Stock

Preferred Stock.AlcoaCorporationisauthorizedtoissue100,000,000sharesofpreferredstockataparvalueof$0.01pershare.AtDecember31,2020and2019,theCompanyhadnoissuedpreferredstock.

Common Stock.AlcoaCorporationisauthorizedtoissue750,000,000sharesofcommonstockataparvalueof$0.01pershare.AsofDecember31,2020,and2019,AlcoaCorporationhad185,978,069and185,580,166,respectively,issuedandoutstandingsharesofcommonstock.

Underitsemployeestock-basedcompensationplan,theCompanyissuedsharesof397,903in2020,809,917in2019,and1,293,336in2018.TheCompanyissuesnewsharestosatisfytheexerciseofstockoptionsandtheconversionofstockunits.AsofDecember31,2020,24,769,326sharesofcommonstockwereavailableforissuance.

InOctober2018,AlcoaCorporation’sBoardofDirectorsauthorizedacommonstockrepurchaseprogramunderwhichtheCompanymaypurchasesharesofitsoutstandingcommonstockuptoanaggregatetransactionalvalueof$200,dependingoncashavailability,marketconditions,andotherfactors.Repurchasesundertheprogrammaybemadeusingavarietyofmethods,whichmayincludeopenmarketpurchases,privatelynegotiatedtransactions,orpursuanttoaRule10b5-1plan.Thisprogramdoesnothaveapredeterminedexpirationdate.AlcoaCorporationintendstoretiretherepurchasedsharesofcommonstock.InDecember2018,theCompanyrepurchased1,723,800sharesofitscommonstockfor$50;theseshareswereimmediatelyretired.Noshareswererepurchasedin2020or2019.

DividendsoncommonstockaresubjecttoauthorizationbyAlcoaCorporation’sBoardofDirectors.TheCompanydidnotdeclareanydividendsin2020,2019,and2018.

Stock-basedCompensation

StockoptionsandstockunitsaregenerallygrantedineitherJanuaryorFebruaryeachcalendaryeartoeligibleemployees(theCompany’sBoardofDirectorsalsoreceivecertainstockunits;however,theseamountsarenotmaterial).StockoptionsaregrantedattheclosingmarketpriceofAlcoaCorporation’scommonstockonthedateofgrantandgradevestoverathree-yearserviceperiod(1/3eachyear)withaten-yearcontractualterm.Stockunitscliffvestonthethirdanniversaryoftheawardgrantdateandcertainoftheseunitsalsoincludeeitheramarketorperformancecondition.

Thefinalnumberofmarket-basedandperformance-basedstockunitsearnedisdependentonAlcoaCorporation’sachievementofcertaintargetsoverathree-yearmeasurementperiodforgrants.Formarket-basedstockunitsgrantedin2019and2018,theawardwillbeearnedattheendofthemeasurementperiodbasedontheCompany’stotalshareholderreturnmeasuredagainstthetotalshareholderreturnoftheStandard&Poor’s500®IndexfromJanuary1ofthegrantyearthroughDecember31ofthethirdyearintheserviceperiod.Forperformance-basedstockunitsgrantedin2019and2018,theawardwillbeearnedattheendofthemeasurementperiodbasedontheCompany’sperformanceagainstapre-establishedreturn-on-capitaltargetmeasuredfromJanuary1ofthegrantyearthroughDecember31ofthethirdyearintheserviceperiod.Formarket-basedstockunitsgrantedin2020,theawardwillbeearnedattheendofthemeasurementperiodbasedontheCompany’stotalshareholderreturnmeasuredagainstthetotalshareholderreturnoftheStandard&Poor’sMetalsandMiningSelectIndustryIndexfromJanuary1ofthegrantyearthroughDecember31ofthethirdyearintheserviceperiod.Forperformance-basedstockunitsgrantedin2020,theawardwillbemeasuredfromJanuary1ofthegrantyearthroughDecember31ofthethirdyearintheserviceperiodandwillbebasedontheCompany’sperformanceagainstthreemeasures:(1)apre-establishedreturn-on-equitytarget;(2)animprovementinproportionalnetdebt;and(3)areductionincarbonintensityinbothrefiningandsmeltingoperations.

In2020,2019,and2018,AlcoaCorporationrecognizedstock-basedcompensationexpenseof$25,$30,and$35,respectively,ofwhichapproximately80%to90%wasrelatedtostockunitsineachperiod.Therewasnostock-basedcompensationexpensecapitalizedin2020,2019,or2018.

Stock-basedcompensationexpenseisbasedonthegrantdatefairvalueoftheapplicableequitygrant.Forbothstockunitswithnoperformanceormarketconditionandstockunitswithaperformancecondition,thefairvaluewasequivalenttotheclosingmarketpriceofAlcoaCorporation’scommonstockonthedateofgrantintherespectiveperiods.Forstockunitswithamarketcondition,thefairvaluewasestimatedonthedateofgrantusingaMonteCarlosimulationmodel,whichgeneratedaresultof$21.43and$35.70perunitin2020and2019,respectively.TheMonteCarlosimulationmodelusescertainassumptionstoestimatethefairvalueofamarket-basedstockunit,includingvolatility(41.65%fortheCompany)andarisk-freeinterestrate(1.38%),toestimatetheprobabilityofsatisfyingmarketconditions(theassumptionsusedtoestimatethefairvalueofstockunitsgrantedin2019werenotmateriallydifferent).Forstockoptions,thefairvaluewasestimatedonthedateofgrantusingalattice-pricingmodel,whichgeneratedaresultof$6.12,$10.86,and$21.32peroptionin2020,2019,and2018,respectively.Thelattice-pricingmodelusesseveralassumptionstoestimatethefairvalueofastockoption,includinganaveragerisk-freeinterestrate,dividendyield,volatility,annualforfeiturerate,exercisebehavior,andcontractuallife.

AssumptionsusedbytheCompanytoestimatethefairvalueofstockoptionsgrantedin2020areasfollows:

• Riskfreerate:1.83%basedonayieldcurveofinterestratesatthetimeofthegrantoverthelifeoftheoption

• Dividendyield:0%basedonhistoricaldividendspaidsincetheSeparationDateandthattheCompanydidnothaveanyimmediateplanstopaydividends

• Volatility:41.12%basedonhistoricalandimpliedvolatilitiesoverthetermoftheoption

• Pre-andpost-vestingforfeitures:4%basedonhistoricaloptionforfeituredata

• Exercisebehavior:61%basedonaweightedaverageexerciseratio

Basedupontheassumptionsusedinthedeterminationofthefairvalue,thelattice-pricingmodelresultedinanoptionlifeof6.0years.Theassumptionsandoptionlifeoutputfor2020werenotmateriallydifferentfrom2019and2018.

Theactivityforstockoptionsandstockunitsduring2020wasasfollows:

Stock options Stock units

Number of

options

Weightedaverage

exercise price Number of

units

Weightedaverage FMV

per unit Outstanding,January1,2020 2,246,563 $ 28.38 2,127,611 $ 36.85Granted 340,400 16.29 2,016,468 15.71Exercised (55,136) 16.26 — —Converted — — (447,862) 37.73Expiredorforfeited (495,202) 27.70 (230,785) 26.59Performanceshareadjustment — — (174,753) 63.21Outstanding,December31,2020 2,036,625 26.85 3,290,679 24.19

ThenumberofConvertedunitsincludes101,447shares“withheld”tomeettheCompany’sstatutorytaxwithholdingrequirementsrelatedtotheincomeearnedbytheemployeesasaresultofvestingintheunits.

AsofDecember31,2020,the2,036,625outstandingstockoptionshadaweightedaverageremainingcontractuallifeof5.53yearsandatotalintrinsicvalueof$5.Additionally,1,416,986ofthetotaloutstandingstockoptionswerefullyvestedandexercisableandhadaweightedaverageremainingcontractuallifeof4.31years,aweightedaverageexercisepriceof$27.79,andatotalintrinsicvalueof$3asofDecember31,2020.Cashreceivedfromstockoptionexerciseswas$1,$2,and$23in2020,2019,and2018,respectively,andthetotalintrinsicvalueofstockoptionsexercisedduring2020,2019,and2018was$0,$1,and$26,respectively.

AtDecember31,2020,therewas$26(pretax)ofcombinedunrecognizedcompensationexpenserelatedtonon-vestedgrantsofbothstockoptionsandstockunits.Thisexpenseisexpectedtoberecognizedoveraweightedaverageperiodof1.62years.

O. Pension and Other Postretirement Benefits

Defined Benefit Plans

AlcoasponsorsseveraldefinedbenefitpensionplanscoveringcertainemployeesintheU.S.andforeignlocations.Pensionbenefitsgenerallydependonlengthofservice,jobgrade,andremuneration.Substantiallyallbenefitsarepaidthroughpensiontruststhataresufficientlyfundedtoensurethatallplanscanpaybenefitstoretireesastheybecomedue.Mostsalariedandnon-bargaininghourlyU.S.employeeshiredafterMarch1,2006participateinadefinedcontributionplaninsteadofadefinedbenefitplan.

TheCompanyalsomaintainshealthcareandlifeinsurancepostretirementbenefitplanscoveringcertaineligibleU.S.retiredemployeesandcertainretireesfromforeignlocations.Generally,themedicalplansareunfundedandpayapercentageofmedicalexpenses,reducedbydeductiblesandothercoverage.Lifebenefitsaregenerallyprovidedbyinsurancecontracts.TheCompanyretainstheright,subjecttoexistingagreements,tochangeoreliminatethesebenefits.Allsalariedandcertainnon-bargaininghourlyU.S.employeeshiredafterJanuary1,2002andcertainbargaininghourlyU.S.employeeshiredafterJuly1,2010arenoteligibleforpostretirementhealthcarebenefits.AllsalariedandcertainhourlyU.S.employeesthatretireonorafterApril1,2008arenoteligibleforpostretirementlifeinsurancebenefits.

AsofJanuary1,2020,thepensionbenefitplansandtheotherpostretirementbenefitplanscoveredanaggregateofapproximately38,000andapproximately30,000participants,respectively.2020 Plan Actions. In2020,managementinitiatedthefollowingactionstocertainpensionandotherpostretirementbenefitplans:

Action #1–InFebruary2020,theCompanyenteredintoanew,six-yearcollectivebargainingagreementwiththeUnionofProfessionalandOfficeWorkersoftheAlcoaSmelterofBaie-ComeauinCanada.Undertheagreement,allunionizedofficeemployeesthatareparticipantsinoneoftheCompany’sdefinedbenefitpensionplansceasedaccruingretirementbenefitsforfutureserviceeffectiveJanuary1,2021.Thischangeaffectedapproximately20employees,whoweretransitionedtoatargetbenefitplan,wherethefundingriskisassumedbytheemployees.TheCompanywillcontributeapproximately12%oftheseparticipants’eligibleearningstothenewplanonanannualbasis.Participantsalreadycollectingbenefitsorwhoterminatedwithavestedbenefitunderthedefinedbenefitpensionplanwerenotaffectedbythesechanges.

Action #2–InFebruary2020,theCompanynotifiedallnon-unionizedhourlyemployeesofAlumineriedeDeschambault,whoareparticipantsinoneoftheCompany’sdefinedbenefitpensionplans,thattheywillceaseaccruingretirementbenefits

forfutureserviceeffectiveJanuary1,2021.Thischangeaffectedapproximately430employees,whoweretransitionedtoatoamember-fundedpensionplan,wherethefundingriskisassumedbytheemployees.TheCompanywillcontributeapproximately12%oftheseparticipants’eligibleearningstothenewplanonanannualbasis.Participantsalreadycollectingbenefitsorwhoterminatedwithavestedbenefitunderthedefinedbenefitpensionplanwerenotaffectedbythesechanges.

Action #3–InApril2020, aspartoftheCompany’sportfolioreview,Alcoaannouncedthatitwillcurtailtheremainingcapacityatit*IntalcosmelterinFerndale,Washingtonamiddecliningmarketconditions.Thefullcurtailmentwascompletedduringthethirdquarterof2020,andtheworkforcewasreducedbyapproximately685people.Asaresult,curtailmentaccountingwastriggeredintheU.S.hourlydefinedbenefitpensionandretireelifeplans(3aand3binthebelowtable,respectively).

Action #4–InSeptember2020,theCompanyandtheUnitedSteelworkersjointlynotifiedcertainU.S.retireesthattheirmedicalandprescriptiondrugcoveragewillbeprovidedthroughaninsuredgroupMedicareAdvantageandPrescriptionDrugplanandwillincludeanincreasetoparticipantcontributions,effectiveJanuary1,2021.Thesechangesaffectedapproximately8,600participants.Althoughtheplanchangeandrelatedremeasurementincreasedtheotherpostretirementbenefitliabilityby$74,theplanchangeloweredtheCompany’sexpectedcashrequirementsfortheprogramoverthenextfiveyears.

Action #5–InOctober2020,theCompanyofferedlumpsumbuyoutstospecificparticipantsinitsU.S.definedbenefitpensionplans.Asaresult,theCompanypaidapproximately$33fromplanassetsonDecember31,2020toapproximately430participants,wasrelievedofthecorrespondingpensionobligationof$35,andrecognizedasettlementchargeof$44.

Action #6–OnNovember30,2020,AlcoaannouncedanagreementtoselltheWarrickRollingMilltoKaiser.Thesaleisexpectedtoclosebytheendofthefirstquarterof2021,subjecttocustomaryclosingconditions.Approximately1,170employeesattherollingoperations,whichincludesthecasthouse,hotmill,coldmills,andcoatingandslittinglines,willbecomeemployeesofKaiseroncethetransactioniscomplete.Asaresult,Alcoarecognizedapensioncurtailmentchargeof$5.

ThefollowingtablepresentscertaininformationandthefinancialimpactsoftheseactionsontheaccompanyingConsolidatedFinancialStatements:

Action #

Number ofaffected planparticipants

Weighted averagediscount rate as of

December 31,2019

Planremeasurement

date

Weighted averagediscount rate as of

plan remeasurementdate

Increase(decrease) to

accrued pensionbenefits

liability(1)

Increase to accruedother

postretirementbenefits liability(1)

Curtailmentcharge

(gain)(2) Settlementcharge(2)

1 ~20 3.15% January31,2020 2.75% $ 18 $ — $ 1 $ —2 ~430 3.20% January31,2020 2.75% 28 — 2 —3a ~300 3.25% April30,2020 2.92% 156 — 1 —3b ~600 3.75% April30,2020 3.44% — — (2) —4 ~8,600 3.11% August31,2020 2.65% — 74 — —5 ~430 N/A December31,2020 N/A (2) — — 446 ~900 N/A December31,2020 N/A 5 — 5 —

~11,280 $ 205 $ 74 $ 7 $ 44

(1) Actions1-4causedinterimplanremeasurements,includinganupdatetothediscountratesusedtodeterminethebenefitobligationsoftheaffectedplans.

Theseamountsincludetheimpactsduetotheinterimplanremeasurements.(2) Theseamountsprimarilyrepresenttheacceleratedamortizationofaportionoftheexistingpriorservicecostorbenefitforcurtailmentsandnetactuarial

lossforsettlementsandwerereclassifiedfromAccumulatedothercomprehensivelosstoRestructuringandothercharges.Net(seeNoteD)ontheaccompanyingStatementofConsolidatedOperations.

2019 Plan Actions.In2019,managementinitiatedthefollowingactionstocertainpensionandotherpostretirementbenefitplans:

Action #1–InJune2019,theCompanyenteredintoanew,six-yearcollectivebargainingagreementwiththeNationalUnionofAluminumEmployeesofBaie-ComeauinCanada.Undertheagreement,allCanadianunionemployeesthatareparticipantsinoneoftheCompany’sdefinedbenefitpensionplansceasedaccruingretirementbenefitsforfutureserviceeffectiveJanuary1,2021.Thischangeaffectedapproximately700employees,whoweretransitionedtoatargetbenefitplan,wherethefundingriskisassumedbytheemployees.TheCompanywillcontributeapproximately12%oftheseparticipants’eligibleearningstothenewplanonanannualbasis.TheCompanywillalsocontributeadditionalcontributionsofapproximately$2spreadoverathree-yearperiodtoimprovethefinancialpositionofthenewlyestablishedtargetbenefit

plan.Participantsalreadycollectingbenefitsorwhoterminatedwithavestedbenefitunderthedefinedbenefitpensionplanwerenotaffectedbythesechanges.

Action #2–InJuly2019,theCompanyenteredintoanew,six-yearcollectivebargainingagreementwiththeUnitedSteelworkersrepresentingtheemployeesofAlumineriedeBécancourInc.inCanada.Undertheagreement,allCanadianunionemployeesthatareparticipantsinoneoftheCompany’sdefinedbenefitpensionplansceasedaccruingretirementbenefitsforfutureserviceeffectiveJuly21,2019.Thischangeaffectedapproximately900employeeswhoweretransitionedtoamember-fundedpensionplan,wherethefundingriskisassumedbytheemployees.TheCompanywillcontributeapproximately12%oftheseparticipants’eligibleearningstothenewplanonanannualbasis.Toimprovethefinancialpositionsofboththeexistingdefinedbenefitpensionplanandthenewlyestablishedmember-fundedpensionplan,theCompanycontributedapproximately$5in2020totheexistingdefinedbenefitpensionplanandwillcontributeapproximately$2spreadoverafive-yearperiodtothenewlyestablishedmember-fundedpensionplan.Participantsalreadycollectingbenefitsorwhoterminatedwithavestedbenefitunderthedefinedbenefitpensionplanwerenotaffectedbythesechanges.

Action #3–InOctober2019,theCompanyofferedlumpsumbuyoutstospecificparticipantsinitsU.S.definedbenefitpensionplans.Asaresult,theCompanypaidapproximately$112fromplanassetsonNovember30,2019toapproximately1,700participantsandwasrelievedofthecorrespondingpensionobligationof$138.

Action #4–InDecember2019,theCompanynotifiedcertainU.S.retireesthattheywillbetransitionedtoaMedicareExchangeplanwithaCompany-providedcontribution,effectiveJanuary1,2021.Thischangeaffectedapproximately6,000participants.Thechangeimprovescostpredictabilityandallowedparticipantstoelectcoveragefromachoiceofavailableoptions.

Action #5–InDecember2019,theCompanynotifiedcertainU.S.retireesthatlifeinsurancewillnolongerbeprovided,effectiveDecember31,2019.Thischangeaffectedapproximately8,900participants.Aspartofthischange,Alcoamadeaone-timetransitionpaymenttotheaffectedretireestotaling$14inDecember2019.

ThefollowingtablepresentscertaininformationandthefinancialimpactsoftheseactionsontheaccompanyingConsolidatedFinancialStatements:

Action #

Number ofaffected planparticipants

Weighted averagediscount rate as of

December 31,2018

Planremeasurement

date

Weighted averagediscount rate as of

plan remeasurementdate

Increase(decrease) to

accrued pensionbenefits

liability(1)

Decrease toaccrued otherpostretirement

benefits liability Curtailment

charge(2) Settlementcharge(2)

1 ~700 3.85% May31,2019 3.15% $ 52 $ — $ 38 $ —2 ~900 3.80% June30,2019 3.00% 23 — — —3 ~1,700 N/A December31,2019 N/A (26) — — 664 ~6,000 N/A December31,2019 N/A — (108) — —5 ~8,900 N/A December31,2019 N/A — (56) — 8

~18,200 $ 49 $ (164) $ 38 $ 74

(1) Actions1and2causedinterimplanremeasurements,includinganupdatetothediscountratesusedtodeterminethebenefitobligationsoftheaffected

plans.Theseamountsincludetheimpactsduetotheinterimplanremeasurements.(2) Theseamountsrepresenttheacceleratedamortizationofaportionoftheexistingpriorservicecostforcurtailmentsandnetactuariallossforsettlements

andwerereclassifiedfromAccumulatedothercomprehensivelosstoRestructuringandothercharges,net(SeeNoteD)ontheaccompanyingStatementofConsolidatedOperations.

Obligations and Funded Status

Pension benefits Other

postretirement benefits December 31, 2020 2019 2020 2019 Change in benefit obligation

Benefitobligationatbeginningofyear $ 6,532 $ 5,997 $ 848 $ 973Servicecost 56 49 5 4Interestcost 168 226 19 36Amendments 1 26 (19) (150)Actuariallosses(gains) 578 746 133 103Settlements (127) (177) — (14)Curtailments 6 — (1) —Benefitspaid,netofparticipants’contributions (381) (379) (100) (111)MedicarePartDsubsidyreceipts — — 7 7Divestitures (2) — — —Foreigncurrencytranslationimpact 73 44 — —Benefitobligationatendofyear $ 6,904 $ 6,532 $ 892 $ 848

Change in plan assets Fairvalueofplanassetsatbeginningofyear $ 5,015 $ 4,610 $ — $ —Actualreturnonplanassets 455 763 — —Employercontributions 347 175 — —Participantcontributions 10 11 — —Benefitspaid (379) (379) — —Administrativeexpenses (24) (19) — —Settlements (127) (177) — —Divestitures (2) — — —Foreigncurrencytranslationimpact 61 31 — —Fairvalueofplanassetsatendofyear $ 5,356 $ 5,015 $ — $ —

Funded status $ (1,548) $ (1,517) $ (892) $ (848)Less:Amountsattributedtojointventurepartners (45) (34) — —Netfundedstatus $ (1,503) $ (1,483) $ (892) $ (848)

Amounts recognized in the Consolidated Balance Sheet consist of:

Noncurrentassets $ — $ 33 $ — $ —Currentliabilities (11) (11) (65) (99)Noncurrentliabilities (1,492) (1,505) (744) (749)Liabilitiesheldforsale — — (83) —Netamountrecognized $ (1,503) $ (1,483) $ (892) $ (848)

Amounts recognized in Accumulated Other Comprehensive Loss consist of:

Netactuarialloss $ 3,563 $ 3,364 $ 374 $ 261Priorservicecost(benefit) 2 5 (156) (154)Total,beforetaxeffect 3,565 3,369 218 107Less:Amountsattributedtojointventurepartners 57 42 — —Netamountrecognized,beforetaxeffect $ 3,508 $ 3,327 $ 218 $ 107

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) consist of:

Netactuarialloss(benefit) $ 462 $ 350 $ 133 $ 103Amortizationofaccumulatednetactuarialloss (263) (247) (20) (18)Priorservicecost(benefit) 1 26 (19) (150)Amortizationofpriorservice(cost)benefit (4) (42) 17 —Total,beforetaxeffect 196 87 111 (65)Less:Amountsattributedtojointventurepartners 15 2 — —Netamountrecognized,beforetaxeffect $ 181 $ 85 $ 111 $ (65)

AtDecember31,2020,thebenefitobligation,fairvalueofplanassets,andfundedstatusforU.S.pensionplanswere$4,695,$3,676,and$(1,019),respectively.AtDecember31,2019,thebenefitobligation,fairvalueofplanassets,andfundedstatusforU.S.pensionplanswere$4,532,$3,429,and$(1,103),respectively.

Pension Plan Benefit Obligations Pension benefits 2020 2019

Theaggregateprojectedbenefitobligationandaccumulatedbenefitobligationforalldefinedbenefitpensionplanswasasfollows:

Projectedbenefitobligation $ 6,904 $ 6,532Accumulatedbenefitobligation 6,702 6,324

Theaggregateprojectedbenefitobligationandfairvalueofplanassetsforpensionplanswithprojectedbenefitobligationsinexcessofplanassetswasasfollows:

Projectedbenefitobligation 6,813 6,014Fairvalueofplanassets 5,267 4,463

Theaggregateaccumulatedbenefitobligationandfairvalueofplanassetsforpensionplanswithaccumulatedbenefitobligationsinexcessofplanassetswasasfollows:

Accumulatedbenefitobligation 6,210 5,873Fairvalueofplanassets 4,805 4,463

Components of Net Periodic Benefit Cost Pension benefits(1) Other postretirement benefits(2) 2020 2019 2018 2020 2019 2018 Servicecost $ 54 $ 48 $ 54 $ 5 $ 4 $ 5Interestcost(3) 164 221 227 19 36 34Expectedreturnonplanassets(3) (292) (325) (341) — — —Recognizednetactuarialloss(3) 212 171 198 20 10 13Amortizationofpriorservicecost(benefit)(3) — 4 8 (15) — —Settlements(4) 51 73 410 — 8 (56)Curtailments(5) 9 38 5 (2) — (28)Netperiodicbenefitcost(6) $ 198 $ 230 $ 561 $ 27 $ 58 $ (32)(1) In2020,2019,and2018,netperiodicbenefitcostforU.Spensionplanswas$154,$155,and$358,respectively.(2) In2020,2019,and2018,netperiodicbenefitcostforotherpostretirementbenefitsreflectsareductionof$4,$7and$8,respectively,relatedtothe

recognitionofthefederalsubsidyawardedunderMedicarePartD.(3) TheseamountswerereportedinOtherexpenses,netontheaccompanyingStatementofConsolidatedOperations.(4) TheseamountswerereportedinRestructuringandothercharges,netontheaccompanyingStatementofConsolidatedOperations(seeNoteD).In2020,

settlementswereduetomanagementactions(seePlanActionsabove)($44)andpaymentofadditionallumpsumbenefits($7).In2019,settlementswereduetomanagementactions(seePlanActionsabove)($74)andpaymentofadditionallumpsumbenefits($7).In2018,settlementswereduetomanagementactions($341)andpaymentoflumpsumbenefits($13).

(5) TheseamountswerereportedinRestructuringandothercharges,netontheaccompanyingStatementofConsolidatedOperations(seeNoteD).In2020,2019,and2018,curtailmentswereduetomanagementactions(seePlanActionsabove).

(6) Amountsattributedtojointventurepartnersarenotincluded.Assumptions. Weightedaverageassumptionsusedtodeterminebenefitobligationsforpensionandotherpostretirementbenefitplanswereasfollows:December 31, 2020 2019 Discountrate—pensionplans 2.41% 3.12%Discountrate—otherpostretirementbenefitplans 2.41 3.12Rateofcompensationincrease—pensionplans 1.77 3.25

Theyieldcurvemodelusedtodevelopthediscountrateparallelstheplans’projectedcashflowsandhasaweightedaverage

durationof11years.Theunderlyingcashflowsofthehigh-qualitycorporatebondsincludedinthemodelexceedthecashflowsneededtosatisfytheCompany’splanobligationsmultipletimes.Ifadeepmarketofhigh-qualitycorporatebondsdoesnotexistinacountry,thentheyieldongovernmentbondsplusacorporatebondyieldspreadisused.

Weightedaverageassumptionsusedtodeterminenetperiodicbenefitcostforpensionandotherpostretirementbenefitplanswereasfollows:

2020 2019 2018 Discountrate—pensionplans 3.02% 3.89% 3.59%Discountrate—otherpostretirementbenefitplans 2.84 3.94 3.18Expectedlong-termrateofreturnonplanassets—pensionplans 6.28 6.59 6.89Rateofcompensationincrease—pensionplans 3.25 3.26 3.28

For2020,2019,and2018,theexpectedlong-termrateofreturnusedbymanagementwasbasedontheprevailingandplannedstrategicassetallocations,aswellasestimatesoffuturereturnsbyassetclass.For2021,managementanticipatesthat5.66%willbetheweightedaverageexpectedlong-termrateofreturn.

InOctober2019,theSocietyofActuaries(SOA)issuedupdatedbasemortalitytables(Pri-2012)andtheirannualupdatetothemortalityimprovementscale(MP-2019).ThesewerebothconsideredindevelopingtheCompany’supdatedmortalityassumptionsforU.S.pensionandpostretirementbenefitobligationsrecordedatDecember31,2019,inconnectionwithanexperiencestudyperformedapproximatelyeveryfiveyears.ThestudyresultedintheuseofPri-2012basetableswithanadjustmenttoreflectAlcoa’sexperienceandamodifiedversionoftheMP-2019improvementscales.

AssumedhealthcarecosttrendratesforU.S.otherpostretirementbenefitplanswereasfollows(non-U.S.plansarenotmaterial): 2020 2019 2018

Healthcarecosttrendrateassumedfornextyear 5.5% 5.5% 5.5%Ratetowhichthecosttrendrategraduallydeclines 4.5% 4.5% 4.5%Yearthattheratereachestherateatwhichitisassumedtoremain 2026 2023 2022

TheassumedhealthcarecosttrendrateisusedtomeasuretheexpectedcostofgrosseligiblechargescoveredbytheCompany’sotherpostretirementbenefitplans.For2021,a5.5%trendratewillbeused,reflectingmanagement’sbestestimateofthechangeinfuturehealthcarecostscoveredbytheplans.

Plan Assets. Alcoa’spensionplaninvestmentpolicyandweightedaverageassetallocationsatDecember31,2020and2019,byassetclass,wereasfollows:

Plan assets atDecember 31,

Asset class Policy range 2020 2019 Equities 0–60% 39% 40%Fixedincome 10–85% 50 49Otherinvestments 0–35% 11 11

Total 100% 100%TheprincipalobjectivesunderlyingtheinvestmentofthepensionplanassetsaretoensurethattheCompanycanproperlyfundbenefitobligationsastheybecomedueunderabroadrangeofpotentialeconomicandfinancialscenarios,maximizethelong-terminvestmentreturnwithanacceptablelevelofriskbasedonsuchobligations,andbroadlydiversifyinvestmentsacrossandwithinvariousassetclassestoprotectassetvaluesagainstadversemovements.Investmentriskiscontrolledbyrebalancingtotargetallocationsonaperiodicbasisandongoingmonitoringofinvestmentmanagerperformance.

Theportfolioincludesanallocationtoinvestmentsinlong-durationgovernmentdebt,long-durationcorporatecredit,realestate,high-yieldbonds,emergingmarketdebt,global-listedinfrastructureandpublicandprivatemarketequities.Thetargetassetallocationisapproximately30%inequities,approximately50%infixedincome,andapproximately20%inotherinvestments.

Investmentpracticescomplywiththerequirementsofapplicablelawsandregulationsintherespectivejurisdictions,includingtheEmployeeRetirementIncomeSecurityActof1974(ERISA)intheUnitedStates.

Thefollowingsectiondescribesthevaluationmethodologiesusedbythetrusteestomeasurethefairvalueofpensionplanassets.Forplanassetsmeasuredatnetassetvalue,thisreferstothenetassetvalueoftheinvestmentonapersharebasis(or

itsequivalent)asapracticalexpedient.Otherwise,anindicationofthelevelinthefairvaluehierarchyinwhicheachtypeofassetisgenerallyclassifiedisprovided(seeNotePforthedefinitionoffairvalueandadescriptionofthefairvaluehierarchy).

Equities—Thesesecuritiesconsistof:(i)directinvestmentsinthestockofpubliclytradedU.S.andnon-U.S.companiesandarevaluedbasedontheclosingpricereportedinanactivemarketonwhichtheindividualsecuritiesaretraded(generallyclassifiedinLevel1);(ii)theplans’shareofcommingledfundsthatareinvestedinthestockofpubliclytradedcompaniesandarevaluedatnetassetvalue;and(iii)directinvestmentsinlong/shortequityhedgefundsandprivateequity(limitedpartnershipsandventurecapitalpartnerships)andarevaluedatnetassetvalue.

Fixed income—Thesesecuritiesconsistof:(i)U.S.governmentdebtandaregenerallyvaluedusingquotedprices(includedinLevel1);(ii)cashandcashequivalentsinvestedinpublicly-tradedfundsandarevaluedbasedontheclosingpricereportedinanactivemarketonwhichtheindividualsecuritiesaretraded(generallyclassifiedinLevel1);(iii)publiclytradedU.S.andnon-U.S.fixedinterestobligations(principallycorporatebondsanddebentures)andarevaluedthroughconsultationandevaluationwithbrokersintheinstitutionalmarketusingquotedpricesandotherobservablemarketdata(includedinLevel2);and(iv)cashandcashequivalentsinvestedininstitutionalfundsandarevaluedatnetassetvalue.

Other investments—Theseinvestmentsinclude,amongothers:(i)realestateinvestmenttrustsvaluedbasedontheclosingpricereportedinanactivemarketonwhichtheinvestmentsaretraded(includedinLevel1);(ii)theplans’shareofcommingledfundsthatareinvestedinrealestatepartnershipsandarevaluedatnetassetvalue;(iii)directinvestmentsinprivaterealestate(includeslimitedpartnerships)andarevaluedatnetassetvalue;and(iv)absolutereturnstrategyfundsandarevaluedatnetassetvalue.

Thefairvaluemethodsdescribedabovemaynotbeindicativeofnetrealizablevalueorreflectiveoffuturefairvalues.Additionally,whileAlcoabelievesthevaluationmethodsusedbytheplans’trusteesareappropriateandconsistentwithothermarketparticipants,theuseofdifferentmethodologiesorassumptionstodeterminethefairvalueofcertainfinancialinstrumentscouldresultinadifferentfairvaluemeasurementatthereportingdate.

Thefollowingtablepresentsthefairvalueofpensionplanassetsclassifiedundereithertheappropriatelevelofthefairvaluehierarchyornetassetvalue:

December 31, 2020 Level 1 Level 2 Net Asset

Value Total Equities:

Equitysecurities $ 379 $ — $ 1,469 $ 1,848Long/shortequityhedgefunds — — 5 5Privateequity — — 207 207

$ 379 $ — $ 1,681 $ 2,060Fixedincome:

Intermediateandlong-durationgovernment/credit $ 925 $ 794 $ 619 $ 2,338Cashandcashequivalentfunds 165 — 189 354Other — 2 — 2

$ 1,090 $ 796 $ 808 $ 2,694Otherinvestments:

Realestate $ 284 $ — $ 273 $ 557Other — — 37 37

$ 284 $ — $ 310 $ 594Total(1) $ 1,753 $ 796 $ 2,799 $ 5,348

December 31, 2019 Level 1 Level 2 Net Asset

Value Total Equities:

Equitysecurities $ 612 $ — $ 1,213 $ 1,825Long/shortequityhedgefunds — — 8 8Privateequity — — 177 177

$ 612 $ — $ 1,398 $ 2,010Fixedincome:

Intermediateandlong-durationgovernment/credit $ 889 $ 700 $ 560 $ 2,149Cashandcashequivalentfunds 23 — 293 316Other — 5 — 5

$ 912 $ 705 $ 853 $ 2,470Otherinvestments:

Realestate $ 208 $ — $ 287 $ 495Other — — 32 32

$ 208 $ — $ 319 $ 527Total(2) $ 1,732 $ 705 $ 2,570 $ 5,007

(1) AsofDecember31,2020,thetotalfairvalueofpensionplanassetsexcludesanetreceivableof$8,whichrepresentssecuritiesnotyetsettledplusinterest

anddividendsearnedonvariousinvestments.(2) AsofDecember31,2019,thetotalfairvalueofpensionplanassetsexcludesanetreceivableof$8,whichrepresentssecuritiesnotyetsettledplusinterest

anddividendsearnedonvariousinvestments.

Funding and Cash Flows. ItisAlcoa’spolicytofundamountsfordefinedbenefitpensionplanssufficienttomeettheminimumrequirementssetforthinapplicablecountrybenefitslawsandtaxlaws,includingERISAforU.S.plans.Fromtimetotime,theCompanycontributesadditionalamountsasdeemedappropriate.In2020,2019,and2018,cashcontributionstoAlcoa’sdefinedbenefitpensionplanswere$343,$173,and$992.

Contributionsmadein2018includeacombined$725ofunscheduledcontributionstoseveraldefinedbenefitpensionplans,includingacombined$620tothreeoftheCompany’sU.S.definedbenefitpensionplansandacombined$105totwooftheCompany’sCanadiandefinedbenefitpensionplans.TheadditionalpaymentstotheU.S.planswerediscretionaryinnatureandwerefundedwith$492innetproceedsfromaMay2018debtissuance(seeNoteM)and$128ofavailablecashonhand.TheprimarypurposeforissuingdebttofundaportionofthediscretionarycontributionstotheU.S.planswastoreducenear-termpensionfundingriskwithafixedrate,10-yearmaturityinstrument.

During2020,theCompanyinitiallydeferredapproximately$200inpensioncontributionsunderprovisionsintheU.S.Government’sCoronavirusAid,Relief,andEconomicSecurity(CARES)Act.Withamplecashonhandandhavingachieveditsobjectivetoholdcashduringuncertaintimesin2020,theCompanymadea$250pensioncontributiontoitsU.S.pensionplansinlateDecembertocoverboththedeferredcontributionsdueonJanuary4,2021andadiscretionaryprepayment.

Alcoa’sminimumrequiredcontributiontodefinedbenefitpensionplansin2021isestimatedtobe$255,ofwhichapproximately$220isforU.S.plans.UnderERISAregulations,aplansponsorthatestablishesapre-fundingbalancebymakingdiscretionarycontributionstoaU.S.definedbenefitpensionplanmayelecttoapplyalloraportionofthisbalancetowarditsminimumrequiredcontributionobligationstotherelatedplaninfutureyears.In2021,managementwillconsidermakingsuchelectionrelatedtotheCompany’sU.S.plans.

Benefitpaymentsexpectedtobepaidtopensionandotherpostretirementbenefitplanparticipantsareasfollows:

Year ending December 31, Pensionbenefits

Otherpostretirement

benefits 2021 $ 445 $ 652022 435 652023 435 602024 430 602025 425 552026through2030 1,980 255 $ 4,150 $ 560

Defined Contribution Plans

TheCompanysponsorssavingsandinvestmentplansinseveralcountries,primarilyinAustraliaandtheUnitedStates.IntheUnitedStates,employeesmaycontributeaportionoftheircompensationtotheplans,andAlcoamatchesaspecifiedpercentageofthesecontributionsinequivalentformoftheinvestmentselectedbytheemployee.Also,theCompanymakescontributionstoaretirementsavingsaccountbasedonapercentageofeligiblecompensationforcertainU.S.employeeshiredafterMarch1,2006thatarenotabletoparticipateinAlcoa’sdefinedbenefitpensionplans.TheCompany’sexpensesrelatedtoalldefinedcontributionplanswere$73in2020,$68in2019,and$69in2018.

Member-funded Pension Plan

EffectiveJuly22,2019,theCompanycontributestoamember-fundedpensionplansponsoredbytheUnitedSteelworkersfortheemployeesofAlumineriedeBécancourInc.inCanada(seePlanActionsabove).Alcoamakescontributionstotheplanbasedonapercentageoftheemployees’eligiblecompensation.TheCompany’sexpensesrelatedtothemember-fundedpensionplanwere$10in2020and$4in2019.

P. Derivatives and Other Financial Instruments

Fair Value.Fairvalueisdefinedasthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.Thefairvaluehierarchydistinguishesbetween(i)marketparticipantassumptionsdevelopedbasedonmarketdataobtainedfromindependentsources(observableinputs)and(ii)anentity’sownassumptionsaboutmarketparticipantassumptionsdevelopedbasedonthebestinformationavailableinthecirc*mstances(unobservableinputs).Thefairvaluehierarchyconsistsofthreebroadlevels,whichgivesthehighestprioritytounadjustedquotedpricesinactivemarketsforidenticalassetsorliabilities(Level1)andthelowestprioritytounobservableinputs(Level3).Thethreelevelsofthefairvaluehierarchyaredescribedbelow:

• Level1—Unadjustedquotedpricesinactivemarketsthatareaccessibleatthemeasurementdateforidentical,unrestrictedassetsorliabilities.

• Level2—InputsotherthanquotedpricesincludedwithinLevel1thatareobservablefortheassetorliability,eitherdirectlyorindirectly,includingquotedpricesforsimilarassetsorliabilitiesinactivemarkets;quotedpricesforidenticalorsimilarassetsorliabilitiesinmarketsthatarenotactive;inputsotherthanquotedpricesthatareobservablefortheassetorliability(e.g.,interestrates);andinputsthatarederivedprincipallyfromorcorroboratedbyobservablemarketdatabycorrelationorothermeans.

• Level3—Inputsthatarebothsignificanttothefairvaluemeasurementandunobservable.

Derivatives.AlcoaCorporationisexposedtocertainrisksrelatingtoitsongoingbusinessoperations,includingtherisksofchangingcommodityprices,foreigncurrencyexchangeratesandinterestrates.AlcoaCorporation’scommodityandderivativeactivitiesincludealuminum,energy,foreignexchangeandinterestratecontractswhichareheldforpurposesotherthantrading.Theyareusedprimarilytomitigateuncertaintyandvolatility,andtocoverunderlyingexposures.AlcoaCorporationisnotinvolvedintradingactivitiesforenergy,weatherderivatives,orothernonexchangecommoditytradingactivities.

AlcoaCorporation’scommodityandderivativeactivitiesaresubjecttothemanagement,direction,andcontroloftheStrategicRiskManagementCommittee(SRMC),whichconsistsofatleastthreemembers,includingthechiefexecutiveofficerandthechieffinancialofficer.Theremainingmember(s)areotherofficersand/oremployeesoftheCompanyasthechiefexecutiveofficermaydesignatefromtimetotime.Currently,theonlyothermemberoftheSRMCisAlcoaCorporation’streasurer.TheSRMCmeetsonaperiodicbasistoreviewderivativepositionsandstrategyandreportstotheAuditCommitteeofAlcoaCorporation’sBoardofDirectorsonthescopeofitsactivities.

SeveralofAlcoaCorporation’saluminum,energy,andforeignexchangecontractsareclassifiedasLevel1orLevel2underthefairvaluehierarchy.Allofthesecontractsaredesignatedaseitherfairvalueorcashflowhedginginstruments.AlcoaCorporationalsohasseveralderivativeinstrumentsclassifiedasLevel3underthefairvaluehierarchy,whichareeitherdesignatedascashflowhedgesorundesignated.

ThefollowingtablespresentthedetailforLevel1,2and3derivatives(seeadditionalLevel3informationinfurthertablesbelow): 2020 2019 Balance at December 31, Assets Liabilities Assets Liabilities Level1and2derivativeinstruments $ 21 $ 7 $ 3 $ 33Level3derivativeinstruments — 838 74 615Total $ 21 $ 845 $ 77 $ 648Less:Current 21 103 59 67Noncurrent $ — $ 742 $ 18 $ 581

2020 2019

Year ended December 31,

Unrealized loss recognized inOther comprehensive (loss)

income

Realized loss reclassed fromOther comprehensive (loss)

income to earnings

Unrealized loss recognized inOther comprehensive (loss)

income

Realized loss reclassed fromOther comprehensive (loss)

income to earnings Level1and2derivativeinstruments $ 8 $ (19) $ (14) $ (26)Level3derivativeinstruments (374) (88) (385) 42Noncontrollingandequityinterest 21 1 (38) (38)Total $ (345) $ (106) $ (437) $ (22)

The2020realizedlossof$19onLevel1and2cashflowhedgeswascomprisedofan$9lossrecognizedinSalesanda$10lossrecognizedinCostofgoodssold.The2019realizedlossof$26onLevel1and2cashflowhedgeswascomprisedofan$18lossrecognizedinSalesandan$8lossrecognizedinCostofgoodssold.

During2018,Alcoarecognizedarealizedlossof$14onLevel1and2cashflowhedgesinSales.

DerivativeinstrumentsclassifiedasLevel3inthefairvaluehierarchyrepresentthoseinwhichmanagementhasusedatleastonesignificantunobservableinputinthevaluationmodel.AlcoaCorporationusesadiscountedcashflowmodeltofairvalueallLevel3derivativeinstruments.Thesevaluationmodelsarereviewedandtestedatleastonanannualbasis.InputsinthevaluationmodelsforLevel3derivativeinstrumentsarecomposedofthefollowing:(i)quotedmarketprices(e.g.,aluminumpricesonthe10-yearLondonMetalExchange(LME)forwardcurveandenergyprices),(ii)significantotherobservableinputs(e.g.,informationconcerningtimepremiumsandvolatilitiesforcertainoptiontypeembeddedderivativesandregionalpremiumsforaluminumcontracts),and(iii)unobservableinputs(e.g.,aluminumandenergypricesbeyondthosequotedinthemarket).Forperiodsbeyondthetermofquotedmarketpricesforaluminum,AlcoaCorporationestimatesthepriceofaluminumbyextrapolatingthe10-yearLMEforwardcurve.ForperiodsbeyondthetermofquotedmarketpricesfortheMidwestpremium,managementestimatestheMidwestpremiumbasedonrecenttransactions.Additionally,forperiodsbeyondthetermofquotedmarketpricesforenergy,managementhasdevelopedaforwardcurvebasedonindependentconsultantmarketresearch.Whereappropriate,valuationsareadjustedforvariousfactorssuchasliquidity,bid/offerspreads,andcreditconsiderations.Suchadjustmentsaregenerallybasedonavailablemarketevidence(Level2).Intheabsenceofsuchevidence,management’sbestestimateisused(Level3).Ifasignificantinputthatisunobservableinoneperiodbecomesobservableinasubsequentperiod,therelatedassetorliabilitywouldbetransferredtotheappropriateclassification(Level1or2)intheperiodofsuchchange(therewerenosuchtransfersintheperiodspresented).Therewerenopurchases,salesorsettlementsofLevel3derivativeinstrumentsintheperiodspresented.

100

Level3derivativeinstrumentsoutstandingasofDecember31,2020aredescribedinthetablebelow:

Description Designation ContractTermination

UnobservableInputs ImpactingValuation Sensitivity to Inputs

Power contracts EmbeddedderivativethatindexespriceofpowertotheLMEpriceofaluminumplustheMidwestpremium

Cashflowhedgeofforwardsalesofaluminum

March2026December2029February2036

LMEprice,MidwestpremiumandMWhperyear

IncreaseinLMEpriceand/ortheMidwestpremiumresultsinahighercostofpowerandadecreasetothederivativeassetorincreasetothederivativeliability

EmbeddedderivativethatindexespriceofpowertotheLMEpriceofaluminum

Cashflowhedgeofforwardsalesofaluminum

September2027 LMEpriceandMWhperyear

IncreaseinLMEpriceresultsinahighercostofpowerandanincreasetothederivativeliability

EmbeddedderivativethatindexesthepriceofpowertothecreditspreadbetweentheCompanyandthecounterparty

Notdesignated October2028 Estimatedcreditspread

Widercreditspreadresultsinahighercostofpowerandincreaseinthederivativeliability

Financial contract Hedgepowerprices Cashflowhedgeoffuture

purchasesofelectricity July2021 Powerprice Lowerpowerpricesresultinalowerderivative

asset

Inadditiontotheinstrumentspresentedabove,AlcoaCorporationhadapowercontractthatexpiredonDecember31,2019containinganembeddedderivativethatindexedthepriceofpowertotheLMEpriceofaluminumthatwasdesignatedasacashflowhedgeofforwardsalesofaluminum.

AtDecember31,2020,theoutstandingLevel3instrumentsareassociatedwithsixsmelters.AtDecember31,2020and2019,thepowercontractswithembeddedderivativesdesignatedascashflowhedgeshedgeforecastedaluminumsalesof2,130kmtand2,347kmt,respectively.AtDecember31,2020and2019,thefinancialcontracthedgesforecastedelectricitypurchasesof1,427,184and3,891,096megawatthours,respectively.

ThefollowingtablepresentsquantitativeinformationrelatedtothesignificantunobservableinputsdescribedaboveforLevel3derivativeinstruments(megawatthoursinMWh):

December 31, 2020 Unobservable Input Unobservable Input Range

Liability Derivatives Powercontract $ 217 MWhofenergyneeded LME(permt) 2021:$1,979 toproducetheforecasted 2027:$2,288 mtofaluminum Electricity Rateof4millionMWhperyearPowercontracts 597 MWhofenergyneeded

toproducetheforecastedmtofaluminum

LME(permt) 2021:$1,9792029:$2,3962036:$2,693

Midwestpremium(perpound)

2021:$0.14652029:$0.16652036:$0.1665

Electricity Rateof17millionMWhperyearPowercontract — MWhofenergyneeded

toproducetheforecasted LME 2021:$1,979

2021:$1,978 mtofaluminum Midwestpremium 2021:$0.1465

2021:$0.1665 Electricity Rateof2millionmegawatthoursperyearPowercontract 23 Estimatedspreadbetween

the30-yeardebtyieldofAlcoaandthecounterparty

Creditspread 3.55%:30-yeardebtyieldspread6.13%:Alcoa(estimated)2.58%:counterparty

Financialcontract 1 Interrelationshipof Electricity(perMWh) 2021:$53.32 forwardenergypriceandtheConsumer

PriceIndex 2021:$33.33

TotalLiabilityDerivatives $ 838

101

ThefairvaluesofLevel3derivativeinstrumentsrecordedintheaccompanyingConsolidatedBalanceSheetwereasfollows:

Asset Derivatives December 31,

2020 December 31,

2019 Derivativesdesignatedashedginginstruments:

Current—financialcontract $ — $ 57Noncurrent—financialcontract — 17

Totalderivativesdesignatedashedginginstruments $ — $ 74TotalAssetDerivatives $ — $ 74Liability Derivatives Derivativesdesignatedashedginginstruments:

Current—powercontracts $ 94 $ 47Current—financialcontract 1 —Noncurrent—powercontracts 720 551

Totalderivativesdesignatedashedginginstruments $ 815 $ 598Derivativesnotdesignatedashedginginstruments:

Current—embeddedcreditderivative $ 4 $ 3Noncurrent—embeddedcreditderivative 19 14

Totalderivativesnotdesignatedashedginginstruments $ 23 $ 17TotalLiabilityDerivatives $ 838 $ 615

ThefollowingtableshowsthenetfairvaluesoftheLevel3derivativeinstrumentsatDecember31,2020andtheeffectontheseamountsofahypotheticalchange(increaseordecreaseof10%)inthemarketpricesorratesthatexistedasofDecember31,2020:

Fair value

liability Index changeof + / -10%

Powercontracts $ 814 $ 346Embeddedcreditderivative 23 2Financialcontract 1 6

ThefollowingtablespresentareconciliationofactivityforLevel3derivativeinstruments:

Assets Liabilities

2020Financialcontract Power contracts

Financialcontract

Embeddedcredit

derivative January1,2020 $ 74 $ 598 $ — $ 17

Totalgainsorlossesincludedin: Sales(realized) — (74) — —Costofgoodssold(realized) 14 — — —Otherexpenses,net(unrealized/realized) — — — 7Othercomprehensive(loss)income(unrealized) (83) 290 1 —

Other (5) — — (1)December31,2020 $ — $ 814 $ 1 $ 23ChangeinunrealizedgainsorlossesincludedinearningsforderivativeinstrumentsheldatDecember31,2020:

Otherexpenses,net $ — $ — $ — $ 11

102

Assets Liabilities

2019 Power contract Financialcontract

Powercontracts

Embeddedcredit

derivative January1,2019 $ 41 $ 112 $ 269 $ 20

Totalgainsorlossesincludedin: Sales(realized) — — (44) —Costofgoodssold(realized) — (86) — —Otherexpenses,net(unrealized/realized) — — (2) (2)Othercomprehensive(loss)income(unrealized) (41) 52 396 —

Other — (4) (21) (1)December31,2019 $ — $ 74 $ 598 $ 17ChangeinunrealizedgainsorlossesincludedinearningsforderivativeinstrumentsheldatDecember31,2019:

Otherexpenses,net $ — $ — $ 1 $ 1

Derivatives Designated As Hedging Instruments—Cash Flow Hedges

AssumingmarketratesremainconstantwiththeratesatDecember31,2020,arealizedlossof$94relatedtopowercontractsandarealizedlossof$1relatedtothefinancialcontractareexpectedtoberecognizedinSalesandCostofgoodssold,respectively,overthenext12months.

Material Limitations

Thedisclosureswithrespecttocommoditypricesandforeigncurrencyexchangeriskdonotconsidertheunderlyingcommitmentsoranticipatedtransactions.Iftheunderlyingitemswereincludedintheanalysis,thegainsorlossesonthefuturescontractsmaybeoffset.ActualresultswillbedeterminedbyseveralfactorsthatarenotunderAlcoaCorporation’scontrolandcouldvarysignificantlyfromthosefactorsdisclosed.

AlcoaCorporationisexposedtocreditlossintheeventofnonperformancebycounterpartiesontheaboveinstruments,aswellascreditorperformanceriskwithrespecttoitshedgedcustomers’commitments.AlcoaCorporationdoesnotanticipatenonperformancebyanyoftheseparties.Contractsarewithcreditworthycounterpartiesandarefurthersupportedbycash,treasurybills,orirrevocablelettersofcreditissuedbycarefullychosenbanks.Inaddition,variousmasternettingarrangementsareinplacewithcounterpartiestofacilitatesettlementofgainsandlossesonthesecontracts.

Other Financial Instruments.ThecarryingvaluesandfairvaluesofAlcoaCorporation’sotherfinancialinstrumentswereasfollows:

2020 2019

December 31, Carrying

value Fairvalue

Carryingvalue

Fairvalue

Cashandcashequivalents $ 1,607 $ 1,607 $ 879 $ 879Restrictedcash 3 3 4 4Short-termborrowings 77 77 — —Long-termdebtduewithinoneyear 2 2 1 1Long-termdebt,lessamountduewithinoneyear 2,463 2,692 1,799 1,961

Thefollowingmethodswereusedtoestimatethefairvaluesofotherfinancialinstruments:

Cash and cash equivalents and Restricted cash.Thecarryingamountsapproximatefairvaluebecauseoftheshortmaturityoftheinstruments.ThefairvalueamountsforCashandcashequivalentsandRestrictedcashwereclassifiedinLevel1ofthefairvaluehierarchy.

Short-term borrowings and Long-term debt, including amounts due within one year.ThefairvaluewasbasedonquotedmarketpricesforpublicdebtandoninterestratesthatarecurrentlyavailabletoAlcoaCorporationforissuanceofdebtwithsimilartermsandmaturitiesfornon-publicdebt.ThefairvalueamountsforallShort-termborrowingsandLong-termdebtwereclassifiedinLevel2ofthefairvaluehierarchy.

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Q. Income Taxes

Provision for income taxes.ThecomponentsofIncome(loss)beforeincometaxeswereasfollows:

2020 2019 2018 Domestic $ (328) $ (1,000) $ (752)Foreign 501 562 2,377Total $ 173 $ (438) $ 1,625

Provisionforincometaxesconsistedofthefollowing:

2020 2019 2018 Current:

Federal $ 2 $ (4) $ 5Foreign 211 404 757Stateandlocal — — —

213 400 762Deferred:

Federal — 2 (21)Foreign (26) 13 (9)Stateandlocal — — —

(26) 15 (30)Total $ 187 $ 415 $ 732

FederalincludesU.S.incometaxesrelatedtoforeignincome.

AreconciliationoftheU.S.federalstatutoryratetoAlcoa’seffectivetaxratewasasfollows:

2020 2019 2018 U.S.federalstatutoryrate 21.0% 21.0% 21.0%Changesinvaluationallowances 168.3 (70.3) 3.4Taxesonforeignoperations—ratedifferential 34.5 (19.3) 12.6Equityincome(loss) 2.0 (1.9) 0.3Noncontrollinginterest 1.6 (6.8) 1.0Non-deductiblelossesonforeigndivestitures — (23.1) —Taxonforeignoperations—other (0.7) (2.7) 1.1Taxholidays (1.9) 2.0 (3.2)Adjustmentofprioryearincometaxes (2.5) (1.1) (0.6)Uncertaintaxpositions (21.5) (0.6) 1.8ImpactsoftheTCJA (88.8) 5.0 9.9Other (3.9) 2.9 (2.3)Effectivetaxrate 108.1% (94.9)% 45.0%Inthefourthquarterof2020,theSupremeCourtofSpainruledinfavorofAlcoaregardingthe2006through2009taxyearassessment.Asaresult,thereserveforUncertaintaxpositionsthatwasestablishedin2018hasbeenreleased.RefertotheTaxMatterssectioninNoteSforfurtherinformation.

OnDecember22,2017,U.S.taxlegislationknownastheU.S.TaxCutsandJobsActof2017(theTCJA)wasenacted.In2018,managementcompleteditsanalysisoftheimpactofthetaxlawchanges,includingtheintroductionoftheGlobalIntangibleLow-TaxedIncomeprovisions(GILTI),thatbecameeffectiveJanuary1,2018undertheTCJArelatedtoAlcoa’s2018ConsolidatedFinancialStatements.TheCompanymadeanaccountingpolicyelectiontoincludeasaperiodcostthetaximpactgeneratedbyincludingGILTIinU.S.taxableincome.TheinclusionofGILTIin2018U.S.taxableincomewasfullyoffsetbycurrentU.S.taxlossesandnetoperatinglosscarryforwardsasexpected.NoneoftheremainingprovisionsoftheTCJAhadamaterialimpactontheCompany’s2018ConsolidatedFinancialStatements.

During2020,theU.S.TreasuryDepartmentfinalizedregulationsimplementingtheGILTIprovisionsoftheTCJA.IncludedintheseregulationsisanexclusionfromGILTIforincomesubjecttoahighrateofforeigntax,whichpermitstaxpayerstoelecttoapplytheexceptiontopreviouslyfiledtaxreturns.Managementintendstofileanamended2018taxreturntomakethiselection.Asaresult,theCompanyrecordedataxbenefitof($138)in2020toreflectthere-establishmentofcertainU.S.Federalnetoperatinglosscarryforwardsandacorrespondingtaxchargeof$138torecordafullvaluationallowanceagainsttheincreaseddeferredtaxasset.

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CertainincomeearnedbyAWABiseligibleforataxholiday,whichdecreasesthetaxrateonthisincomefrom34%to15.25%,whichwillresultinfuturecashtaxsavings.TheholidayrelatedtoproductionattheAlumarrefinerywillendonDecember31,2027,andtheholidayrelatedtotheoperationoftheJuruti(Brazil)bauxiteminewillendonDecember31,2026.Inaddition,deferredtaxassetsexpectedtoreverseintheholidayperiodarerevaluedattheholidayrate.Thisresultedinadiscreteincometaxchargeof$15and$7in2020and2019,respectively,andincometaxbenefitof$5in2018.

Certaincomponentsofthe2019restructuringchargesresultingfromtheMRCdivestitureandtheAvilésandLaCoruñafacilitiescurtailmentandsubsequentdivestiturearenotdeductiblefortaxpurposes.Theseamountsare$65forMRCand$35forAvilésandLaCoruñacombinedandareincludedinNon-deductiblelossesonforeigndivestituresintheabovetable.SeeNoteCforadditionalinformationonthedivestiturecharges.

Deferred income taxes.Thecomponentsofdeferredtaxassetsandliabilitiesbasedontheunderlyingattributeswithoutregardtojurisdictionwereasfollows:

2020 2019

December 31,

Deferredtax

assets

Deferredtax

liabilities

Deferredtax

assets

Deferredtax

liabilities Taxlosscarryforwards $ 1,668 $ — $ 1,411 $ —Employeebenefits 711 — 698 —Derivativesandhedgingactivities 214 — 154 22Lossprovisions 183 — 203 —Investmentbasisdifferences 139 — 164 —Depreciation 66 434 72 436Interest 60 2 — 2Leaseassetsandliabilities 37 36 41 40Taxcreditcarryforwards 27 — 26 —Deferredincome/expense 22 116 11 134Other 41 2 43 1 3,168 590 2,823 635Valuationallowance (2,127) — (1,778) —Total $ 1,041 $ 590 $ 1,045 $ 635

Thefollowingtabledetailstheexpirationperiodsofthedeferredtaxassetspresentedabove:

December 31, 2020

Expireswithin

10 years

Expireswithin11-20years

Noexpiration Other Total

Taxlosscarryforwards $ 284 $ 381 $ 1,003 $ — $ 1,668Taxcreditcarryforwards 17 10 — — 27Other — — 220 1,253 1,473Valuationallowance (301) (359) (822) (645) (2,127)Total $ — $ 32 $ 401 $ 608 $ 1,041

Deferredtaxassetswithnoexpirationmaystillhaveannuallimitationsonutilization.Otherrepresentsdeferredtaxassetswhoseexpirationisdependentuponthereversaloftheunderlyingtemporarydifference.

Thetotaldeferredtaxasset(netofvaluationallowance)issupportedbyprojectionsoffuturetaxableincomeexclusiveofreversingtemporarydifferencesandtaxabletemporarydifferencesthatreversewithinthecarryforwardperiod.ThecompositionofAlcoa’snetdeferredtaxassetbyjurisdictionasofDecember31,2020wasasfollows:

Domestic Foreign Total Deferredtaxassets $ 1,308 $ 1,860 $ 3,168Valuationallowance (1,185) (942) (2,127)Deferredtaxliabilities (116) (474) (590)Total $ 7 $ 444 $ 451

TheCompanyhasseveralincometaxfilersinvariousforeigncountries.Ofthe$444netdeferredtaxassetincludedundertheForeigncolumninthetableabove,approximately90%relatestosevenofAlcoa’sincometaxfilersasfollows:a$166net

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deferredtaxassetforAlcoaAlumínioS.A.inBrazil;a$148netdeferredtaxassetforAlcoaCanadaCompanyinCanada;a$104deferredtaxassetforEspañolainSpain;a$80netdeferredtaxassetforAWABinBrazil;a$38netdeferredtaxassetforAlcoaLauralcoManagementCompanyinCanada;a$38netdeferredtaxassetforAlcoaWolinbecCompanyinCanada;and,a$170netdeferredtaxliabilityforAofAinAustralia.

ThefuturerealizationofthenetdeferredtaxassetforeachoftheForeignFilerswasbasedonprojectionsoftherespectivefuturetaxableincome(definedasthesumofpretaxincome,othercomprehensiveincome,andpermanenttaxdifferences),exclusiveofreversingtemporarydifferencesandcarryforwards.TherealizationofthenetdeferredtaxassetsoftheForeignFilersisnotdependentonanyfuturetaxplanningstrategies.BothAlcoaCanadaCompanyandAlcoaWolinbecCompanyareinathree-yearcumulativelosspositionfortheperiodendedDecember31,2020withoutavaluationallowancewhere,inmanagement’sjudgment,theweightofthepositiveevidencemorethanoffsetsthenegativeevidenceofthecumulativelosses.Uponchangesinfactsandcirc*mstances,managementmayconcludethatAlcoaCanadaCompanyorAlcoaWolinbecCompany’sdeferredtaxassetsmaynotberealized,resultinginafuturechargetoestablishavaluationallowance.ManagementhasforecastedtaxableincomeforeachoftheForeignFilersfortheforeseeablefuture.Thisforecastisbasedonmacroeconomicindicatorsandinvolvesassumptionsrelatedto,amongothers:commodityprices;volumelevels;andkeyinputsandrawmaterials,suchasbauxite,alumina,causticsoda,calcinedpetroleumco*ke,liquidpitch,energy,labor,andtransportationcosts.ThesearethesameassumptionsutilizedbymanagementtodevelopthefinancialandoperatingplanthatisusedtomanagetheCompanyandmeasureperformanceagainstactualresults.

ThemajorityoftheAlcoaCanadaCompanyandaportionoftheAlcoaWolinbecCompanynetdeferredtaxassetsrelatetopensionobligationsandderivatives.ThemajorityoftheotherForeignFilers’andtheremainingportionofAlcoaCanadaCompany’sandAlcoaWolinbecCompany’snetdeferredtaxassetsrelatetotaxlosscarryforwards.TheForeignFilersdonothaveahistoryoftaxlosscarryforwardsexpiringunused.Additionally,taxlosscarryforwardshaveaninfinitelifeundertherespectiveincometaxcodesinBrazilandSpain.However,utilizationofanexistingtaxlosscarryforwardislimitedto30%and25%oftaxableincomeinaparticularyearinBrazilandSpain,respectively.

Accordingly,managementconcludedthatthenetdeferredtaxassetsoftheForeignFilerswillmorelikelythannotberealizedinfutureperiods,resultinginnoneedforapartialorfullvaluationallowanceasofDecember31,2020.

Thefollowingtabledetailsthechangesinthevaluationallowance:December 31, 2020 2019 2018 Balanceatbeginningofyear $ (1,778) $ (1,684) $ (1,927)Establishmentofnewallowances(1) — — (86)Netchangetoexistingallowances(2) (315) (101) 312Foreigncurrencytranslation (34) 7 17Balanceatendofyear $ (2,127) $ (1,778) $ (1,684)(1) Thislineitemreflectsvaluationallowancesinitiallyestablishedasaresultofachangeinmanagement’sjudgmentregardingtherealizabilityofdeferredtax

assets.(2) Thislineitemreflectsmovementsinpreviouslyestablishedvaluationallowances,whichincreaseordecreaseastherelateddeferredtaxassetsincreaseor

decrease.Suchmovementsoccurasaresultofremeasurementduetoataxratechangeandchangesintheunderlyingattributesofthedeferredtaxassets,includingexpirationoftheattributeandreversalofthetemporarydifferencethatgaverisetothedeferredtaxasset.

In2018,Alcoaimmediatelyestablishedafullvaluationallowanceof$86relatedtoaninitialdeferredtaxassetassociatedwiththeCompany’sequityinterestinElysisTM(seeNoteH).Atinception,theCompanycontributedcertainintellectualpropertyandpatentsandmadeaninitialcashinvestmentof$5toElysisTM.Thisdeferredtaxassetrelatestoanoutsidebasisdifferencecreatedbytheexcessofthetaxbasis(i.e.fairvalue)oftheseassetsoverthecarryingvalueoftheinvestmentinElysisTMrecordedbytheCompany.Since2018,thegrossoutsidebasisdifferencehasdecreasedby$102duetotaxdepreciationbasedonthefairvalueofthecontributedassetsatinception.TheresultingvaluationallowancerelatedtotheCompany’sequityinterestinElysisTMis$58atDecember31,2020.TheinitialpurposeofElysisTMistoadvancedevelopmentofaluminumsmeltertechnologywiththeultimategoalofcommercialization.Afterweighingallavailablepositiveandnegativeevidence,managementdetermineditisnotmorelikelythannotthattheCompanywillrealizethetaxbenefitofthisdeferredtaxasset.ThisconclusionwasbasedonthefactthatElysisTMisexpectedtogeneratelossesfortheforeseeablefutureasElysisTMincursexpensesduringthedevelopmentstagewithoutacommittedfuturerevenuestream.Theneedforthisvaluationallowancewillbeassessedonacontinuousbasisinfutureperiodsand,asaresult,aportionoralloftheallowancemaybereversedbasedonchangesinfactsandcirc*mstances.

Undistributed net earnings.ThecumulativeamountofAlcoa’sforeignundistributednetearningsdeemedtobepermanentlyreinvestedwasapproximately$1,915asofDecember31,2020.AlcoaCorporationhasseveralcommitmentsandobligationsrelatedtotheCompany’soperationsinvariousforeignjurisdictions;therefore,managementhasnoplanstodistributesuchearningsintheforeseeablefuture.AlcoaCorporationcontinuouslyevaluatesitslocalandglobalcashneeds

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forfuturebusinessoperationsandanticipateddebtfacilities,whichmayinfluencefuturerepatriationdecisions.ItisnotpracticabletoestimatethetaxliabilitythatmightbeincurredifsuchearningswereremittedtotheU.S.

Unrecognized tax benefits.AlcoaanditssubsidiariesfileincometaxreturnsintheU.S.federaljurisdictionandvariousforeignandU.S.statejurisdictions.Withfewexceptions,theCompanyisnotsubjecttoincometaxexaminationsbytaxauthoritiesforyearspriorto2014.ForU.S.federalincometaxpurposes,virtuallyalloftheCompany’sU.S.operationswereincludedintheincometaxfilingsofParentCo’sU.S.consolidatedtaxgrouppriortotheSeparationDate.Sincethattime,theCompany’sU.S.consolidatedtaxgroup,comprisedofthereferencedU.S.operations,hasfiledU.S.federalincometaxreturnsforthetwo-month2016post-separationperiodaswellastaxyears2017,2018,and2019.Taxyears2017and2018arecurrentlyunderexaminationbytheInternalRevenueService.TheU.S.federalincometaxfilingsofParentCo’sU.S.consolidatedtaxgrouphavebeenexaminedforallpriorperiodsthroughtheSeparationDate.ForeignjurisdictiontaxauthoritiesareintheprocessofexaminingincometaxreturnsofseveralofAlcoa’ssubsidiariesforvarioustaxyears.ExcludingtheAustraliataxmatterdiscussedinNoteS,theperiodunderforeignexaminationincludestheincometaxyearsfrom2006through2019.ForU.S.stateincometaxpurposes,theCompanyanditssubsidiariesremainsubjecttoincometaxexaminationsforthe2015taxyearandforward(asofDecember31,2020,thereweretwoactivelimitedscopeexaminations).

Inthethirdquarterof2020,AofApaidapproximately$74(A$107)totheATOrelatedtothetaxdisputedescribedinNoteS.Uponpayment,AofArecordedanoncurrenttaxassessmentdeposit,astheCompanycontinuestobelieveitismorelikelythannotthatAofA’staxpositionwillbesustainedandthereforeisnotrecognizinganytaxexpenseinrelationtothismatter.InaccordancewithAustraliantaxlaws,theinitialinterestassessmentandadditionalinterestaredeductibleagainstAofA’s2020taxableincomeresultingin$169(A$219)lowercashtaxpaymentsinthesecondhalfof2020.InterestcompoundedinfutureyearsisalsodeductibleagainstAofA’sincomeintherespectiveperiods.IfAofAisultimatelysuccessful,theinterestdeductionwouldbecometaxableasincomeintheyearthedisputeisresolved.Inaddition,shouldtheATOdecideintheinterimtoreduceanyinterestalreadyassessed,thereductionwouldbetaxableasincomeatthatpointintime.During2020,AofAcontinuedtorecorditstaxprovisionandtaxliabilitywithouteffectoftheATOassessment,sinceitexpectstoprevail.The2020taxpayableremainsonAofA’sbalancesheetasanoncurrentaccruedtaxliabilityandwillbeincreasedbythetaxeffectofsubsequentperiods’interestdeductions,untildisputeresolution,whichisexpectedtotakeseveralyears.AtDecember31,2020,thenoncurrentaccruedtaxliabilityresultingfromthecumulativeinterestdeductionswasapproximately$169(A$219).

Areconciliationofthebeginningandendingamountofunrecognizedtaxbenefits(excludinginterestandpenalties)wasasfollows:December 31, 2020 2019 2018 Balanceatbeginningofyear $ 29 $ 30 $ 10Additionsfortaxpositionsofthecurrentyear — — 1Additionsfortaxpositionsofprioryears — — 20Reductionsfortaxpositionsofprioryears (26) — —Foreigncurrencytranslation 1 (1) (1)Balanceatendofyear $ 4 $ 29 $ 30

Forallperiodspresented,aportionofthebalanceatendofyearpertainstostatetaxliabilities,whicharepresentedbeforeanyoffsetforfederaltaxbenefits.Theeffectofunrecognizedtaxbenefits,ifrecorded,thatwouldimpacttheannualeffectivetaxratefor2020,2019,and2018wouldbe3%,(7)%,and2%,respectively,ofpretaxbook(loss)income.In2018,theCompanyrecordedachargeof$30(€26),including$10(€9)forinterest,inProvisionforincometaxesontheaccompanyingStatementofConsolidatedOperationstoestablishaliabilityforits49%shareoftheestimatedlossonadisputedincometaxmatter(seeSpainintheTaxsectionofNoteS).In2020,theCompanyreceivedafavorablefinalrulingintheSupremeCourtofSpainontheSpaintaxmatterandrecordedincomeof$32(€26)fromthereversalofthe2018entryandtheinterestexpenseaccruedthrough2019.ThischangeisreflectedintheabovetableasReductionsfortaxpositionsofprioryearsintheamountof$21(€17),whichisexclusiveofinterestpreviouslychargedtoexpense.TheremainderofthechangeinReductionsfortaxpositionsofprioryearsisprimarilyrelatedtochangesinBrazilincometaxpositions.AlcoadoesnotanticipatethatchangesinitsunrecognizedtaxbenefitswillhaveamaterialimpactontheStatementofConsolidatedOperationsduring2021.

ItistheCompany’spolicytorecognizeinterestandpenaltiesrelatedtoincometaxesasacomponentoftheProvisionforincometaxesontheaccompanyingStatementofConsolidatedOperations.In2020,2019,and2018Alcoarecognized$0,$2,and$10,respectively,ininterestandpenalties.Duetotheexpirationofthestatuteoflimitations,settlementswithtaxauthorities,andrefundedoverpayments,theCompanyalsorecognizedinterestincomeof$13,$1,and$1in2020,2019,and2018,respectively.AsofDecember31,2020,and2019,theamountaccruedforthepaymentofinterestandpenaltieswas$2and$14,respectively.

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R. Asset Retirement Obligations

AlcoarecordsAROsrelatedtolegalobligationsassociatedwiththestandardoperationofbauxitemines,aluminarefineries,andaluminumsmelters.TheseAROsconsistprimarilyofcostsassociatedwithminereclamation,closureofbauxiteresidueareas,spentpotliningdisposal,andlandfillclosure.TheCompanyalsorecognizesAROsforanysignificantleaserestorationobligation,ifrequiredbyaleaseagreement,andforthedisposalofregulatedwastematerialsrelatedtothedemolitionofcertainpowerfacilities.

ThefollowingtabledetailsthecarryingvalueofrecordedAROsbymajorcategory,ofwhich$128and$111wasclassifiedasacurrentliabilityasofDecember31,2020and2019,respectively:December 31, 2020 2019 Minereclamation $ 264 $ 205Closureofbauxiteresidueareas 278 282Spentpotliningdisposal 108 106Demolition 72 85Landfillclosure 31 39Balanceatendofyear $ 753 $ 717

ThefollowingtabledetailsthechangesinthetotalcarryingvalueofrecordedAROs:December 31, 2020 2019 Balanceatbeginningofyear $ 717 $ 651Accretionexpense 21 22Liabilitiesincurred 107 148Payments (93) (90)Reversalsofpreviouslyrecordedliabilities (17) (12)Foreigncurrencytranslationandother 18 (2)Balanceatendofyear $ 753 $ 717

In2020,ReversalsofpreviouslyrecordedliabilitieswereprimarilyrelatedtothesaleofGumSprings(seeNoteU)andcompletionofdemolitionprojectsatnumeroussites.In2019,ReversalsofpreviouslyrecordedliabilitieswereprimarilyrelatedtothedivestitureoftheAvilésandLaCoruña(Spain)facilities(seeNoteD).

Liabilitiesincurredin2020includeaccrualsfornewmineareasopenedduringtheyear,higherestimatedminereclamationcosts,accrualsforbauxiteresidueareasopenedduringtheyear,andaccrualsrelatedtospentpotliningtreatmentanddisposals.Theadditionalaccrualswereprimarilyrecordedwithcorrespondingcapitalizedassetretirementcosts(seeNoteB)exceptfor$2whichwasrecordedtoRestructuringandothercharges,netontheaccompanyingStatementofConsolidatedOperations(seeNoteD).Liabilitiesincurredin2019includes$72relatedtotheclosureofthePointComfortaluminarefinerythatwasrecordedinRestructuringandothercharges,netontheaccompanyingStatementofConsolidatedOperations(seeNoteD).S. Contingencies and Commitments

Unlessspecificallydescribedtothecontrary,allmatterswithinNoteSarethefullresponsibilityofAlcoaCorporationpursuanttotheSeparationandDistributionAgreement.Additionally,theSeparationandDistributionAgreementprovidesforcross-indemnitiesbetweentheCompanyandParentCoforclaimssubjecttoindemnification.

Contingencies

EnvironmentalMatters

AlcoaCorporationparticipatesinenvironmentalassessmentsandcleanupsatseverallocations.Theseincludecurrentlyorpreviouslyownedoroperatedfacilitiesandadjoiningproperties,andwastesites,includingSuperfund(ComprehensiveEnvironmentalResponse,CompensationandLiabilityAct(CERCLA))sites.

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Thefollowingtabledetailsthechangesinthecarryingvalueofrecordedenvironmentalremediationreserves:Balance at December 31, 2017 $ 294Liabilitiesincurred 19Cashpayments (25)Reversalsofpreviouslyrecordedliabilities (3)Foreigncurrencytranslationandother (5)Balance at December 31, 2018 280Liabilitiesincurred 73Cashpayments (17)Reversalsofpreviouslyrecordedliabilities (1)Balance at December 31, 2019 335Liabilitiesincurred 7Cashpayments (19)Foreigncurrencytranslationandother (1)Balance at December 31, 2020 $ 322

AtDecember31,2020and2019,thecurrentportionoftheremediationreservebalancewas$29and$39,respectively.

In2020,theCompanyincurredliabilitiesof$7whichwereprimarilyrelatedtoongoingremediationworkatvarioussites.TheadditionalaccrualswererecordedtoCostofgoodssoldexceptfor$1whichwasrecordedtoRestructuringandothercharges,netontheaccompanyingStatementofConsolidatedOperations(seeNoteD).

In2019,theCompanyincurredliabilitiesof$73whichwereprimarilyrelatedtotheclosureofthePointComfortaluminarefineryandrecordedinRestructuringandothercharges,netontheaccompanyingStatementofConsolidatedOperations(seeNoteD).TheremainingamountwasrecordedtoCostofgoodssold.

In2018,changestotheliabilityweretheresultofongoingremediationworkatvarioussites.TheadditionalaccrualswererecordedtoCostofgoodssoldexceptfor$2thatwasrecordedtoRestructuringandothercharges,netontheaccompanyingStatementofConsolidatedOperations(seeNoteD).TheestimatedtimingofcashoutflowsontheenvironmentalremediationreserveatDecember31,2020isasfollows:2021 $ 292022-2026 142Thereafter 151Total $ 322

TheSeparationandDistributionAgreementincludesprovisionsfortheassignmentorallocationofenvironmentalliabilitiesbetweenAlcoaCorporationandParentCo.Ingeneral,therespectivepartiesareresponsiblefortheenvironmentalmattersassociatedwiththeiroperationsandthepropertiesassignedtoeach,aswellascertainenvironmentalmatterswithasharedresponsibilitybetweenthetwocompanies.

ReservebalancesatDecember31,2020and2019,associatedwithsignificantsiteswithactiveremediationunderwayorforfutureremediationwere$259and$274,respectively.Inmanagement’sjudgment,theCompany’sreservesaresufficienttosatisfytheprovisionsoftherespectiveactionplans.TheCompany’ssignificantsitesinclude:

Poços de Caldas, Brazil—Thereserveassociatedwiththe2015closureoftheAlcoaAlumínioS.A.smelterinPoçosdeCaldas,Brazil,isforremediationofhistoricspentpotliningstorageanddisposalareas.Thefinalremediationplaniscurrentlyunderreview;suchreviewcouldrequirethereservebalancetobeadjusted.

Fusina and Portovesme, Italy—AlcoaCorporation’ssubsidiaryAlcoaTrasformazioniS.r.l.hasremediationprojectsunderwayforitsclosedsmeltersitesatFusinaandPortovesmewhichhavebeenapprovedbytheItalianMinistryofEnvironmentandProtectionofLandandSea(MOE).WorkisongoingforsoilremediationattheFusinasitewithexpectedcompletionin2022andatthePortovesmesitewithexpectedcompletioninthefirsthalfof2021.Additionally,annualpaymentsaremadetoMOEovera10-yearperiodthrough2022forgroundwateremergencycontainmentandnaturalresourcedamagesattheFusinasite.AgroundwaterremediationprojectatPortovesmehadafinalremedialdesigncompletedin2020andisawaitingapprovalfromtheMOE.

Suriname—Thereserveassociatedwiththe2017closureoftheSuralcorefineryandbauxitemineisfortreatmentanddisposalofrefinerywasteandsoilremediation.Theworkbeganin2017andisexpectedtobecompletedattheendof2025.

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Hurricane Creek, Arkansas—Thereserveassociatedwiththe1990closureoftwominingareasandrefineriesnearHurricaneCreek,Arkansasisforongoingmonitoringandmaintenanceforwaterqualitysurroundingthemineareasandresiduedisposalareas.

Massena, New York—Thereserveassociatedwiththe2015closureoftheMassenaEastsmelterbytheCompany’ssubsidiary,ReynoldsMetalsCompany,isforsubsurfacesoilremediationtobeperformedafterdemolitionofthestructures.Remediationworkisexpectedtocommencein2021andwilltakefourtoeightyearstocomplete.

Point Comfort, Texas—Thereserveassociatedwiththe2019closureofthePointComfortaluminarefineryisfordisposalofindustrialwastescontainedatthesite,subsurfaceremediation,andpost-closuremonitoringandmaintenance.Thefinalremediationplaniscurrentlyunderreview,whichmayresultinachangetotheexistingreserve.

Sherwin, Texas—Inconnectionwiththe2018settlementofadisputerelatedtothepreviously-ownedSherwinaluminarefinery,theCompany’ssubsidiary,CopanoEnterprisesLLC,acceptedresponsibilityforthefinalclosureoffourbauxiteresiduewastedisposalareas(knownastheCopanofacility).Workcommencedonthefirstresiduein2018andwilltakeeighttotwelveyearstocomplete,dependingonthenatureofitspotentialre-use.Workonthenextthreeareashasnotcommencedbutisexpectedtobecompletedby2048,dependingonitspotentialre-use.

Longview, Washington—Inconnectionwitha2018ConsentDecreeandCleanupActionPlanwiththeStateofWashingtonDepartmentofEcology,theCompany’ssubsidiary,NorthwestAlloysaslandowner,acceptedcertainresponsibilitiesforfutureremediationofcontaminatedsoilandsedimentsatthesitelocatednearLongview,Washington.InDecember2020,thelesseeoftheland,whoisapartnerintheremediationofthesite,filedforbankruptcy.AsofDecember31,2020,thereserverelatedtothesiteisdeemedtobesufficient.

Other Sites—TheCompanyisintheprocessofdecommissioningvariousotherplantsandremediatingsitesinseveralcountriesforpotentialredevelopmentortoreturnthelandtoanaturalstate.Inaggregate,thereareapproximately35remediationprojectsattheseothersitesthatareplannedorunderway.Theseactivitieswillbecompletedatvarioustimesinthefuturewiththelatestexpectedtobein2026,afterwhichongoingmonitoringandotheractivitiesmayberequired.AtDecember31,2020and2019,thereservebalanceassociatedwiththeseactivitieswas$63and$61,respectively.

TaxMatters

Spain—InJuly2013,followingacorporateincometaxauditcoveringthe2006through2009taxyears,anassessmentwasreceivedfromSpain’staxauthoritiesdisallowingcertaininterestdeductionsclaimedbyParentCo’sSpanishconsolidatedtaxgroup.Throughvariousstagesofsubsequentappeal,denialandre-assessmentthroughthethirdquarterof2018,AlcoaCorporationmanagementcametobelievethatitwasnolongermorelikelythannot(greaterthan50%)toprevailinthismatter.Accordingly,inthethirdquarterof2018,AlcoaCorporationrecordedachargeof$30(€26)inProvisionforincometaxestoestablishaliabilityforitsportionoftheestimatedlossinthismatter,representingmanagement’sbestestimateatthetime.

OnNovember8,2018,AlcoafiledapetitionforappealtotheSupremeCourtofSpain.Duringthefourthquarterof2020,theSupremeCourtofSpainmetandruledinfavorofAlcoaonthe2006through2009taxyearassessment.Therulingisfinalandcannotbefurtherappealed.Asaresultofthefinalruling,Alcoareversedthe$32(€26)reservethatwasestablishedin2018andthematterisnowconsideredclosed.Additionally,aliensecuredwiththeSanCipriánsmeltertoSpain’staxauthoritiesthatwasprovidedinrelationtothismatterhasbeenauthorizedforrelease.

Brazil (AWAB)—InMarch2013,AWABwasnotifiedbytheBrazilianFederalRevenueOffice(RFB)thatapproximately$110(R$220)ofvalueaddedtaxcreditspreviouslyclaimedarebeingdisallowedandapenaltyof50%assessed.Ofthisamount,AWABreceived$41(R$82)incashinMay2012.Thevalue-addedtaxcreditswereclaimedbyAWABforbothfixedassetsandexportsalesrelatedtotheJurutibauxitemineandSãoLuísrefineryexpansion.TheRFBhasdisallowedcreditstheyallegebelongtotheconsortiuminwhichAWABownsaninterestandshouldnothavebeenclaimedbyAWAB.Creditshavealsobeendisallowedasaresultofchallengestoapportionmentmethodsused,questionsabouttheuseofthecredits,andanallegedlackofdocumentedproof.AWABpresenteddefenseofitsclaimtotheRFBonApril8,2013.IfAWABissuccessfulinthisadministrativeprocess,theRFBwouldhavenofurtherrecourse.Ifunsuccessfulinthisprocess,AWABhastheoptiontolitigateatajudiciallevel.SeparatelyfromAWAB’sadministrativeappeal,inJune2015,newtaxlawwasenactedrepealingtheprovisionsinthetaxcodethatwerethebasisfortheRFBassessinga50%penaltyinthismatter.Assuch,theestimatedrangeofreasonablypossiblelossforthesemattersis$0to$42(R$220).Itismanagement’sopinionthattheallegationshavenobasis;however,atthistime,theCompanyisunabletoreasonablypredictanoutcomeforthismatter.

Australia (AofA)—InDecember2019,AofAreceivedastatementofauditposition(SOAP)fromtheAustralianTaxationOffice(ATO)relatedtothepricingofcertainhistoricthird-partyaluminasales.TheSOAPproposedadjustmentsthatwouldresultinadditionalincometaxpayablebyAofA.During2020,theSOAPwasthesubjectofanindependentreviewprocesswithintheATO.Attheconclusionofthisprocess,theATOdeterminedtocontinuewiththeproposedadjustmentsandissued

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NoticesofAssessment(theNotices)thatwerereceivedbyAofAonJuly7,2020.TheNoticesassertedclaimsforincometaxpayablebyAofAofapproximately$165(A$214).TheNoticesalsoincludeclaimsforcompoundedinterestonthetaxamounttotalingapproximately$544(A$707).

OnSeptember17,2020,theATOissuedapositionpaperwithitspreliminaryviewontheimpositionofadministrativepenaltiesrelatedtothetaxassessmentissuedtoAofA.Thispaperproposedpenaltiesofapproximately$99(A$128).AofAdisagreeswiththeATO’sproposedpositiononpenaltiesandsubmittedaresponsetothepositionpaperinthefourthquarterof2020.AfterreviewingAofA’sresponse,theATOcouldissueapenaltyassessment.

TheCompanydoesnotagreewiththeATO’spositions,andAofAwillcontinuetodefendthismatterandpursueallavailabledisputeresolutionmethods,uptoandincludingthefilingofproceedingsintheAustralianCourts,aprocesswhichcouldlastseveralyearsandcouldinvolvesignificantexpenses.TheCompanymaintainsthatthesalessubjecttotheATO’sreview,whichwereultimatelysoldtoAluminiumBahrainB.S.C.,weretheresultofarm’slengthtransactionsbyAofAovertwodecadesandweremadeatarm’slengthpricesconsistentwiththepricespaidbyotherthird-partyaluminacustomers.

InaccordancewiththeATO’sdisputeresolutionpractices,AofApaid50%oftheassessedincometaxamountexclusiveofinterestandanypenalties,orapproximately$74(A$107),duringthethirdquarter2020,andtheATOisnotexpectedtoseekfurtherpaymentpriortofinalresolutionofthematter.IfAofAisultimatelysuccessful,anyamountspaidtotheATOaspartofthe50%paymentwouldberefunded.AofAfundedthepaymentwithcashonhandandrecordedthepaymentwithinOthernoncurrentassetsasataxassessmentdeposit;therelatedDecember31,2020balanceis$82(A$107).

Furtherinterestontheunpaidtaxandinterestamountswillcontinuetoaccrueduringthedispute.TheinitialinterestassessmentandtheadditionalinterestaccruedaredeductibleagainsttaxableincomebyAofAbutwouldbetaxableasincomeintheyearthedisputeisresolvedifAofAisultimatelysuccessful.AofAappliedthisdeductionbeginninginthethirdquarterof2020andhasreducedthecurrentyearcashtaxpaymentsbyapproximately$169(A$219).ThisamounthasbeenreflectedwithinOthernoncurrentliabilitiesanddeferredcreditsasanoncurrentaccruedtaxliabilityasofDecember31,2020(seeNoteU).

TheCompanycontinuestobelieveitismorelikelythannotthatAofA’staxpositionwillbesustainedandthereforeisnotrecognizinganytaxexpenseinrelationtothismatter.However,becausetheultimateresolutionofthismatterisuncertainatthistime,theCompanycannotpredictthepotentiallossorrangeoflossassociatedwiththeoutcome,whichmaymateriallyaffectit*resultsofoperationsandfinancialcondition.ReferencestoanyassessedU.S.dollaramountspresentedinconnectionwiththismatterhavebeenconvertedintoU.S.dollarsfromAustraliandollarsbasedontheexchangerateineffectasofDecember31,2020.

AofAispartoftheCompany’sjointventurewithAluminaLimited,anAustralianpubliccompanylistedontheAustralianSecuritiesExchange.TheCompanyandAluminaLimitedown60%and40%,respectively,ofthejointventureentities,includingAofA.

General

Inadditiontothemattersdiscussedabove,variousotherlawsuits,claims,andproceedingshavebeenormaybeinstitutedorassertedagainstAlcoaCorporation,includingthosepertainingtoenvironmental,safetyandhealth,commercial,tax,productliability,intellectualpropertyinfringement,employment,andemployeeandretireebenefitmatters,andotheractionsandclaimsarisingoutofthenormalcourseofbusiness.Whiletheamountsclaimedintheseothermattersmaybesubstantial,theultimateliabilityisnotreadilydeterminablebecauseoftheconsiderableuncertaintiesthatexist.Accordingly,itispossiblethattheCompany’sliquidityorresultsofoperationsinaparticularperiodcouldbemateriallyaffectedbyoneormoreoftheseothermatters.However,basedonfactscurrentlyavailable,managementbelievesthatthedispositionoftheseothermattersthatarependingorassertedwillnothaveamaterialadverseeffect,individuallyorintheaggregate,onthefinancialpositionoftheCompany.

Commitments

Purchase Obligations. AlcoaCorporationispartytounconditionalpurchaseobligationsforenergythatexpirebetween2028and2036.Commitmentsrelatedtothesecontractstotal$53in2021,$113in2022,$115in2023,$117in2024,$118in2025,and$948thereafter.Expendituresunderthesecontractstotaled$79in2020,$146in2019,and$169in2018.Additionally,theCompanyhasenteredintootherpurchasecommitmentsforenergy,rawmaterials,andothergoodsandservices,whichtotal$2,279in2021$1,818in2022,$1,576in2023,$1,456in2024,$1,447in2025,and$9,935thereafter.

AofAhasagassupplyagreementtopoweritsthreealuminarefineriesinWesternAustraliawhichbeganinJuly2020fora12-yearperiod.ThetermsofthisagreementrequiredAofAtomakeaprepaymentof$500intwoinstallments,thefirstofwhichwasmadeinJune2015for$300.Thesecondinstallmentof$200wasmadeinApril2016.AtDecember31,2020,AlcoaCorporationhadatotalassetof$481(A$625)whichwasincludedinPrepaidexpensesandothercurrentassets($42)andOthernoncurrentassets($439)(seeNoteU)ontheaccompanyingConsolidatedBalanceSheetrelatedtothese

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prepayments.AtDecember31,2019,AlcoaCorporationhadatotalassetof$458(A$654)whichwasincludedinPrepaidexpensesandothercurrentassets($21)andOthernoncurrentassets($437)(seeNoteU)ontheaccompanyingConsolidatedBalanceSheet.

Guarantees of Third Parties.AsofDecember31,2020and2019,theCompanyhadnooutstandingpotentialfuturepaymentsforguaranteesissuedonbehalfofathirdparty.During2019,AlcoaCorporationdivesteditsinterestinMRC,dissolvingthepreviousguaranteerelatedtoprojectfinancingfortherollingmillinSaudiArabia.

Bank Guarantees and Letters of Credit.AlcoaCorporationhasoutstandingbankguaranteesandlettersofcreditrelatedto,amongothers,energycontracts,environmentalobligations,legalandtaxmatters,outstandingdebt,leasingobligations,workerscompensation,andcustomsduties.Thetotalamountcommittedundertheseinstruments,whichautomaticallyreneworexpireatvariousdatesbetween2021and2023,was$320(includes$110issuedunderastandbyletterofcreditagreement—seebelow)atDecember31,2020.Additionally,ParentCohasoutstandingbankguaranteesandlettersofcreditrelatedtotheCompanyintheamountof$20atDecember31,2020.IntheeventParentCowouldberequiredtoperformunderanyoftheseinstruments,ParentCowouldbeindemnifiedbyAlcoaCorporationinaccordancewiththeSeparationandDistributionAgreement.Likewise,theCompanyhasoutstandingbankguaranteesandlettersofcreditrelatedtoParentCointheamountof$11atDecember31,2020.IntheeventAlcoaCorporationwouldberequiredtoperformunderanyoftheseinstruments,theCompanywouldbeindemnifiedbyParentCoinaccordancewiththeSeparationandDistributionAgreement.

InAugust2017,AlcoaCorporationenteredintoastandbyletterofcreditagreement,whichexpiresonMay3,2021(extendedoriginallyinAugust2018andagaininMay2019),withthreefinancialinstitutions.Theagreementprovidesfora$150facility,whichwillbeusedbytheCompanyformattersintheordinarycourseofbusiness.AlcoaCorporation’sobligationsunderthisfacilitywillbesecuredinthesamemannerasobligationsundertheCompany’sRevolvingCreditFacility.Additionally,thisfacilitycontainssimilarrepresentationsandwarrantiesandaffirmative,negative,andfinancialcovenantsastheCompany’sRevolvingCreditFacility(seeNoteM).AsofDecember31,2020,lettersofcreditaggregating$110wereissuedunderthisfacility.

Surety Bonds.AlcoaCorporationhasoutstandingsuretybondsprimarilyrelatedtotaxmatters,contractperformance,workerscompensation,environmental-relatedmatters,andcustomsduties.Thetotalamountcommittedunderthesebonds,whichautomaticallyreneworexpireatvariousdates,mostlyin2021,was$122atDecember31,2020.Additionally,ParentCohasoutstandingsuretybondsrelatedtotheCompanyintheamountof$15atDecember31,2020.IntheeventParentCowouldberequiredtoperformunderanyoftheseinstruments,ParentCowouldbeindemnifiedbyAlcoaCorporationinaccordancewiththeSeparationandDistributionAgreement.Likewise,theCompanyhasoutstandingsuretybondsrelatedtoParentCointheamountof$3atDecember31,2020.IntheeventAlcoaCorporationwouldberequiredtoperformunderanyoftheseinstruments,theCompanywouldbeindemnifiedbyParentCoinaccordancewiththeSeparationandDistributionAgreement.

T. Leasing

Alcoarecordsaright-of-useassetandleaseliabilityforseveraltypesofoperatingleases,includinglandandbuildings,aluminarefineryprocesscontroltechnology,plantequipment,vehicles,andcomputerequipment.Theseamountsareequivalenttotheaggregatefutureleasepaymentsonadiscountedbasis.Theleaseshaveremainingtermsofoneto37years.ThediscountrateappliedtotheseleasesistheCompany’sincrementalborrowingratebasedontheinformationavailableatthecommencementdateindeterminingthepresentvalueofleasepayments,unlessthereisarateimplicitintheleaseagreement.TheCompanydoesnothavematerialfinancingleases.

Leaseexpenseandoperatingcashflowsinclude: 2020 2019 Costsfromoperatingleases $ 74 $ 78Variableleasepayments $ 11 $ 16Short-termrentalexpense $ 3 $ 6

Right-of-useassetstotaling$6wereimpairedin2019inconjunctionwiththepermanentclosureofthePointComfort(Texas)aluminarefinery(seeNoteD).

Theweightedaverageleasetermandweightedaveragediscountratewereasfollows:December 31, 2020 2019 Weightedaverageleasetermforoperatingleases(years) 4.4 4.6Weightedaveragediscountrateforoperatingleases 5.2% 5.4%

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Thefollowingrepresentstheaggregateright-of-useassetsandrelatedleaseobligationsrecognizedintheConsolidatedBalanceSheet:December 31, 2020 2019 Properties,plants,andequipment,net $ 137 $ 154Othercurrentliabilities 60 61Othernoncurrentliabilitiesanddeferredcredits 82 100Totaloperatingleaseliabilities 142 161

Right-of-useassetsandleaseliabilitiesrelatedtotheWarrickRollingMillhavebeenexcludedfromtheDecember31,2020balancesintheabovetableduetotheannouncedsaleoftherollingmillandhavebeenreclassifiedtoAssetsheldforsale(seeNoteC).

Newleasesof$54and$30wereaddedduringtheyearsendedDecember31,2020and2019,respectively.

ThefuturecashflowsrelatedtotheoperatingleaseobligationsasofDecember31,2020wereasfollows:Year Ending December 31, 2021 $ 682022 332023 212024 132025 8Thereafter 22Totalleasepayments(undiscounted) 165

Less:discounttonetpresentvalue (23)Total $ 142

U. Other Financial Information

Interest Cost Components

2020 2019 2018 Amountchargedtoexpense $ 146 $ 121 $ 122Amountcapitalized 9 13 14 $ 155 $ 134 $ 136

Other Expenses, Net

2020 2019 2018 Equityloss $ 46 $ 49 $ 17Foreigncurrencylosses(gains),net 20 16 (57)Netgainfromassetsales (173) (3) —Netloss(gain)onmark-to-marketderivativeinstruments(P) 11 (1) (25)Non-servicecosts–pensionandOPEB(O) 108 117 139Other,net (4) (16) (10) $ 8 $ 162 $ 64

In2020,Netgainfromassetsalesincludeda$181gainrelatedtothesaleofEES(seeNoteC).

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Other Noncurrent AssetsDecember 31, 2020 2019 Gassupplyprepayment(S) $ 439 $ 437Prepaidgastransmissioncontract 315 281Goodwill(L) 145 150Deferredminingcosts,net 136 124Value-addedtaxcredits 134 179Taxassessmentdeposit(S) 82 —Intangibles,net(L) 45 52Prepaidpensionbenefit(O) — 33Other 148 156 $ 1,444 $ 1,412

Aspartofaprevioussaletransactionofanequityinvestment,Alcoamaintainedaccesstoapproximately30%oftheDampiertoBunburyNaturalGasPipelinetransmissioncapacityinWesternAustraliaforgassupplytothreealuminarefineries.AtDecember31,2020and2019,AofAhadanassetof$315and$281,respectively,representingprepaymentsmadeundertheagreementforfuturegastransmissionservices.

TheValue-addedtax(VAT)credits(federalandstate)relatetotwooftheCompany’ssubsidiariesinBrazil,AWABandAlumínio,concerningtheSãoLuísrefinery.ThisrefinerypaysVATonthepurchaseofgoodsandservicesusedinthealuminaproductionprocess.ThecreditsgenerallycanbeutilizedtooffsettheVATchargedondomesticsalesofaluminaandaluminum.However,thereisnotadomesticmarketinBrazilforthesaleofaluminaandtheCompany’sSãoLuíssmelterhasbeenfullycurtailedsinceApril2015.

Inthefourthquarterof2018,managementperformedanupdatedassessmentofthefuturerealizabilityofthestateVATcreditsamidunfavorablemarketconditionsandalackofafavorablepowercontractfortheSãoLuíssmelter.Asaresult,managementdetermineditnecessarytoestablishanallowanceontheaccumulatedstateVATbalancesandrecordeda$107chargeinRestructuringandothercharges,net,(seeNoteD)ontheaccompanyingStatementofConsolidatedOperations.WhiletheCompanyretainstheabilitytoutilizethestatecreditsinthefuture,practicallyonlytherestartoftheSãoLuíssmelterprovidestheopportunitytomonetizethesecredits.NoallowancewasestablishedonthefederalVATcreditsastheycanbeusedtoreduceothertypesoffederaltaxobligations.ThestateVATamountsareexpensedtoCostofgoodssoldasincurred.ManagementcontinuestomaintaintheSãoLuíssmelterassetsforthefutureincaseofapotentialrestart.

Other Noncurrent Liabilities and Deferred CreditsDecember 31, 2020 2019 Noncurrentaccruedtaxliability(S) $ 169 $ —Accruedcompensationandretirementcosts 116 110Operatingleaseobligations(T) 82 100Deferredenergycredits 56 50Deferredaluminasalesrevenue 45 52Other 47 58 $ 515 $ 370

OthernoncurrentliabilitiesrelatedtotheWarrickRollingMillhavebeenexcludedfromtheDecember31,2020balancesintheabovetableduetotheannouncedsaleoftherollingmillandhavebeenreclassifiedtoLiabilitiesheldforsale(seeNoteC).

Deferredenergycreditsrelatetocashreceivedin2019forcarbondioxideemissioncreditsfromagovernmentalagency.ThetermsofthecreditsrequiretheCompanytocomplywithcertainconditionsforaperiodofthreeyears.ThesedeferredcreditswillberecognizedasareductiontoCostofgoodssoldonceitisdeterminedtobeprobabletheCompanywillsatisfyallconditions.ShouldtheCompanynotmeetallconditionsduringthethree-yearperiod,thecreditswillberepaidtothegovernmentalagency.

Cash and Cash Equivalents and Restricted Cash December 31, 2020 2019 Cashandcashequivalents $ 1,607 $ 879Restrictedcash 3 4 $ 1,610 $ 883

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RestrictedcashamountsarereportedinPrepaidexpensesandothercurrentassetsontheaccompanyingConsolidatedBalanceSheet.Cash Flow Information

Cashpaidforinterestandincometaxeswasasfollows:

2020 2019 2018 Interest,netofamountcapitalized $ 135 $ 113 $ 111Incometaxes,netofamountrefunded 183 732 507

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Item 8A. Supplemental Financial Information (unaudited)

Quarterly Data(in millions, except per-share amounts)

First Second Third Fourth Year

2020 Sales $ 2,381 $ 2,148 $ 2,365 $ 2,392 $ 9,286Netincome(loss) $ 139 $ (150) $ (20) $ 17 $ (14)Netincome(loss)attributabletoAlcoaCorporation $ 80 $ (197) $ (49) $ (4) $ (170)EarningspershareattributabletoAlcoaCorporationcommonshareholders(1):

Basic $ 0.43 $ (1.06) $ (0.26) $ (0.02) $ (0.91)Diluted $ 0.43 $ (1.06) $ (0.26) $ (0.02) $ (0.91)

2019 Sales $ 2,719 $ 2,711 $ 2,567 $ 2,436 $ 10,433Netloss $ (58) $ (293) $ (147) $ (355) $ (853)NetlossattributabletoAlcoaCorporation $ (199) $ (402) $ (221) $ (303) $ (1,125)EarningspershareattributabletoAlcoaCorporationcommonshareholders(1):

Basic $ (1.07) $ (2.17) $ (1.19) $ (1.63) $ (6.07)Diluted $ (1.07) $ (2.17) $ (1.19) $ (1.63) $ (6.07)

(1) Pershareamountsarecalculatedindependentlyforeachperiodpresented;therefore,thesumofthequarterlypershareamountsmaynotequalthepershare

amountsfortheyear.

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Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

Item 9A. Controls and Procedures.

(a)EvaluationofDisclosureControlsandProcedures

AlcoaCorporation’sChiefExecutiveOfficerandChiefFinancialOfficerhaveevaluatedtheCompany’sdisclosurecontrolsandprocedures,asdefinedinRules13a-15(e)and15d-15(e)oftheU.S.SecuritiesExchangeActof1934,asamended,asoftheendoftheperiodcoveredbythisreport,andtheyhaveconcludedthatthesecontrolsandproceduresareeffectiveasofDecember31,2020.

(b)Management’sAnnualReportonInternalControloverFinancialReporting

Management’sReportonInternalControloverFinancialReportingisincludedinPartIIItem8ofthisForm10-K.

(c)AttestationReportoftheRegisteredPublicAccountingFirm

TheeffectivenessofAlcoaCorporation’sinternalcontroloverfinancialreportingasofDecember31,2020hasbeenauditedbyPricewaterhouseCoopersLLP,anindependentregisteredpublicaccountingfirm,asstatedintheirreport,whichisincludedinPartIIItem8ofthisForm10-K.

(d)ChangesinInternalControloverFinancialReporting

Therehavebeennochangesininternalcontroloverfinancialreportingduringthefourthquarterof2020thathavemateriallyaffected,orarereasonablylikelytomateriallyaffect,theCompany’sinternalcontroloverfinancialreporting.

Item 9B. Other Information.

None.

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PART III

Item 10. Directors, Executive Officers and Corporate Governance.

TheinformationrequiredbyItem401ofRegulationS-KregardingexecutiveofficersissetforthinPartIItem1ofthisForm10-KunderthecaptionInformationaboutourExecutiveOfficers.TheinformationrequiredbyItem401ofRegulationS-Kregardingdirectorsiscontainedunderthecaption“Item1ElectionofDirectors”ofAlcoaCorporation’sDefinitiveProxyStatementforthe2021AnnualMeetingofStockholders(ProxyStatement),whichwillbefiledwiththeSECwithin120daysoftheendofAlcoaCorporation’sfiscalyearendedDecember31,2020andisincorporatedhereinbyreference.

TheCompany’sCodeofConduct,whichincorporatesaCodeofEthicsthatappliestoourprincipalexecutiveofficer,principalfinancialofficer,principalaccountingofficerorcontroller,ispubliclyavailableontheCompany’swebsiteatwww.alcoa.comunderthesection“Investors—Governance—GovernanceDocuments—CodeofConduct.”AlcoaCorporationwillpostanyamendmentsto,orwaiversof,itsCodeofConductthatapplytoitsprincipalexecutiveofficer,principalfinancialofficer,principalaccountingofficerorcontrolleronitswebsite.

TheinformationrequiredbyItems407(c)(3),(d)(4)and(d)(5)ofRegulationS-Kisincludedunderthecaptions“Item1ElectionofDirectors—NominatingBoardCandidates—ProceduresandDirectorQualifications,”“CorporateGovernance—BoardInformation—BoardMeetingsandAttendance”and“CorporateGovernance—BoardInformation—CommitteesoftheBoard”oftheProxyStatementandisincorporatedhereinbyreference.

Item 11. Executive Compensation.

TheinformationrequiredbyItem402ofRegulationS-Kiscontainedunderthecaptions“Item1ElectionofDirectors—Non-EmployeeDirectorCompensationProgram,”“ExecutiveCompensation”(excludingtheinformationunderthecaption“—CompensationCommitteeReport”),and“CorporateGovernance—BoardInformation—TheBoard’sRoleinRiskOversight”oftheProxyStatement.Suchinformationisincorporatedhereinbyreference.

TheinformationrequiredbyItems407(e)(4)and(e)(5)ofRegulationS-Kiscontainedunderthecaptions“CorporateGovernance—CompensationMatters—CompensationCommitteeInterlocksandInsiderParticipation”and“ExecutiveCompensation—CompensationCommitteeReport,”respectively,oftheProxyStatement.Suchinformation(otherthantheCompensationCommitteeReport,whichshallnotbedeemedtobefiled)isincorporatedhereinbyreference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

TheinformationrequiredbyItem201(d)ofRegulationS-Kiscontainedunderthecaption“EquityCompensationPlanInformation”oftheProxyStatementandisincorporatedhereinbyreference.

TheinformationrequiredbyItem403ofRegulationS-Kiscontainedunderthecaption“BeneficialOwnership”oftheProxyStatementandisincorporatedhereinbyreference.

Item 13. Certain Relationships and Related Transactions, and Director Independence.

TheinformationrequiredbyItem404ofRegulationS-Kiscontainedunderthecaption“CorporateGovernance—RelatedPersonTransactions”oftheProxyStatementandisincorporatedhereinbyreference.

TheinformationrequiredbyItem407(a)ofRegulationS-Kiscontainedunderthecaption“CorporateGovernance—BoardInformation”oftheProxyStatementandisincorporatedhereinbyreference.

Item 14. Principal Accounting Fees and Services.

TheinformationrequiredbyItem9(e)ofSchedule14Aiscontainedunderthecaption“Item2RatificationoftheAppointmentofIndependentAuditor—AuditCommitteePre-ApprovalPolicy”and“Item2RatificationoftheAppointmentofIndependentAuditor—AuditorFees”oftheProxyStatementandisincorporatedhereinbyreference.

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PART IV

Item 15. Exhibit and Financial Statement Schedules.

(a)Theconsolidatedfinancialstatementsandexhibitslistedbelowarefiledaspartofthisreport.

(1)TheCompany’sconsolidatedfinancialstatements,thenotestheretoandthereportoftheIndependentRegisteredPublicAccountingFirmareincludedinPartIIItem8ofthisreport.

(2)Financialstatementscheduleshavebeenomittedbecausetheyarenotapplicable,notrequired,ortherequiredinformationisincludedintheconsolidatedfinancialstatementsornotesthereto.

(3)Exhibits.ExhibitNo.

Description of Exhibit

3.1 AmendedandRestatedCertificateofIncorporationofAlcoaCorporation(incorporatedbyreferencetoExhibit3.1totheCompany’sCurrentReportonForm8-KfiledNovember3,2016(FileNo.1-37816))

3.2 AmendedandRestatedBylawsofAlcoaCorporation,asadoptedonDecember6,2017(incorporatedbyreferencetoExhibit3.1totheCompany’sCurrentReportonForm8-KfiledDecember8,2017(FileNo.1-37816))

4.1 Indenture,datedSeptember27,2016,amongAlcoaNederlandHoldingB.V.,AlcoaUpstreamCorporationandTheBankofNewYorkMellonTrustCompany,N.A.(incorporatedbyreferencetoExhibit10.19toAmendmentNo.4totheCompany’sRegistrationStatementonForm10filedSeptember29,2016(FileNo.1-37816))

4.2 SupplementalIndenture,datedasofNovember1,2016,amongtheentitieslistedinAnnexAthereto,subsidiariesofAlcoaCorporation,AlcoaCorporation,AlcoaNederlandHoldingB.V.andTheBankOfNewYorkMellonTrustCompany,N.A.(incorporatedbyreferencetoExhibit4.3totheCompany’sCurrentReportonForm8-KfiledNovember4,2016(FileNo.1-37816))

4.3 SecondSupplementalIndenture,datedasofDecember9,2019,amongAlcoaCorporation,AlcoaTreasuryS.àr.l,AlcoaNederlandHoldingB.V.,andTheBankofNewYorkMellonTrustCompany,N.A.undertheIndenturedatedSeptember27,2016(incorporatedbyreferencetoExhibit4.3totheCompany’sAnnualReportonForm10-KfortheyearendedDecember31,2019,filedFebruary21,2020(FileNo.1-137816)

4.4 Indenture,datedMay17,2018,amongAlcoaNederlandHoldingB.V.,AlcoaCorporation,certainsubsidiariesofAlcoaCorporation,andtheBankofNewYorkMellonTrustCompany,N.A.,astrustee(incorporatedbyreferencetoExhibit4.1totheCompany’sCurrentReportonForm8-KfiledMay17,2018(FileNo.1-37816))

4.5 SupplementalIndenture,datedasofDecember9,2019,amongAlcoaCorporation,AlcoaTreasuryS.àr.l,AlcoaNederlandHoldingB.V.,andTheBankofNewYorkMellonTrustCompany,N.A.undertheIndenturedatedMay17,2018(incorporatedbyreferencetoExhibit4.5totheCompany’sAnnualReportonForm10-KfortheyearendedDecember31,2019,filedFebruary21,2020(FileNo.1-137816))

4.6 Indenture,datedJuly13,2020,amongAlcoaNederlandHoldingB.V.,AlcoaCorporation,certainsubsidiariesofAlcoaCorporation,andTheBankofNewYorkMellonTrustCompany,NationalAssociation,astrustee(incorporatedbyreferencetoExhibit4.1totheCompany’sCurrentReportonForm8-KfiledJuly13,2020(FileNo.1-37816))

4.7 DescriptionofSecurities(incorporatedbyreferencetoExhibit4.6totheCompany’sAnnualReportonForm10-KfortheyearendedDecember31,2019,filedFebruary21,2020(FileNo.1-137816))

10.1 SeparationandDistributionAgreement,datedasofOctober31,2016,byandbetweenArconicInc.andAlcoaCorporation(incorporatedbyreferencetoExhibit2.1totheCompany’sCurrentReportonForm8-KfiledNovember4,2016(FileNo.1-37816))

10.2 TaxMattersAgreement,datedasofOctober31,2016,byandbetweenArconicInc.andAlcoaCorporation(incorporatedbyreferencetoExhibit2.3totheCompany’sCurrentReportonForm8-KfiledNovember4,2016(FileNo.1-37816))

10.3 AlcoaCorporationtoArconicInc.Patent,Know-How,andTradeSecretLicenseAgreement,datedasofOctober31,2016,byandbetweenAlcoaUSACorp.andArconicInc.(incorporatedbyreferencetoExhibit2.5totheCompany’sCurrentReportonForm8-KfiledNovember4,2016(FileNo.1-37816))

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ExhibitNo.

Description of Exhibit

10.4 ArconicInc.toAlcoaCorporationPatent,Know-How,andTradeSecretLicenseAgreement,datedasofOctober31,2016,byandbetweenArconicInc.andAlcoaUSACorp.(incorporatedbyreferencetoExhibit2.6totheCompany’sCurrentReportonForm8-KfiledNovember4,2016(FileNo.1-37816))

10.5 AmendedandRestatedAlcoaCorporationtoArconicInc.TrademarkLicenseAgreement,datedasofJune25,2017,byandbetweenAlcoaUSACorp.andArconicInc.(incorporatedbyreferencetoExhibit2totheCompany’sQuarterlyReportonForm10-QfiledAugust3,2017(FileNo.1-37816))

10.6 SecondAmendmentandRestatementAgreement,datedasofNovember21,2018,whichincludes,asExhibitAthereto,theRevolvingCreditAgreement,datedasofSeptember16,2016,asamendedasofOctober26,2016,asamendedandrestatedasofNovember14,2017,amongAlcoaCorporation,AlcoaNederlandHoldingB.V.,thelendersandissuersfromtimetotimepartythereto,andJPMorganChaseBank,N.A.,asadministrativeagentforthelendersandissuers(incorporatedbyreferencetoExhibit10.1totheCompany’sCurrentReportonForm8-KfiledNovember26,2018(FileNo.1-37816))

10.7 AmendmentNo.1datedasofAugust16,2019totheRevolvingCreditAgreementdatedasofSeptember16,2016,asamendedasofOctober26,2016,asamendedandrestatedasofNovember14,2017andasamendedandrestatedasofNovember21,2018,amongAlcoaCorporation,AlcoaNederlandHoldingB.V.,thelendersandissuersfromtimetotimepartythereto,andJPMorganChaseBank,N.A.,asadministrativeagentforthelendersandissuers(incorporatedbyreferencetoExhibit10.1totheCompany’sQuarterlyReportonForm10-QfiledOctober31,2019(FileNo.1-37816))

10.8 AmendmentNo.2datedasofApril21,2020totheRevolvingCreditAgreementdatedasofSeptember16,2016,asamendedasofOctober26,2016,asamendedandrestatedasofNovember14,2017andasamendedandrestatedasofNovember21,2018andasamendedonAugust16,2019,amongAlcoaCorporation,AlcoaNederlandHoldingB.V.,thelendersandissuersfromtimetotimepartythereto,andJPMorganChaseBank,N.A.,asadministrativeagentforthelendersandissuers(incorporatedbyreferencetoExhibit10.1totheCompany’sQuarterlyReportonForm10-QfiledApril29,2020(FileNo.1-37816))

10.9 AmendmentNo.3datedasofJune24,2020totheRevolvingCreditAgreementdatedasofSeptember16,2016,asamendedasofOctober26,2016,asamendedandrestatedasofNovember14,2017andasamendedandrestatedasofNovember21,2018,asamendedonAugust16,2019,andasamendedonApril21,2020,amongAlcoaCorporation,AlcoaNederlandHoldingB.V.,thelendersandissuersfromtimetotimepartythereto,andJPMorganChaseBank,N.A.,asadministrativeagentforthelendersandissuers(incorporatedbyreferencetoExhibit10.1totheCompany’sCurrentReportonForm8-KfiledJune25,2020(FileNo.1-37816))

10.10 AmendedandRestatedCharteroftheStrategicCouncilfortheAWACJointVenture(incorporatedbyreferencetoExhibit10.1totheCompany’sCurrentReportonForm8-KfiledNovember4,2016(FileNo.1-37816))

10.11SideLetterofNovember1,2016,betweenAlcoaCorporationandAluminaLimitedclarifyingtransferrestrictions(incorporatedbyreferencetoExhibit10.3totheCompany’sCurrentReportonForm8-KfiledNovember4,2016(FileNo.1-37816))

10.12ThirdAmendedandRestatedLimitedLiabilityCompanyAgreementofAlcoaWorldAluminaLLC,datedasofNovember1,2016,byandamongAlcoaUSACorp.,ASCAlumina,AluminaInternationalHoldingsPtyLtd,Alumina(USA)Inc.,ReynoldsMetalsCompany,LLCandReynoldsMetalsExploration,Inc.(incorporatedbyreferencetoExhibit10.2totheCompany’sCurrentReportonForm8-KfiledNovember4,2016(FileNo.1-37816))

10.13Shareholders’AgreementbetweenAlcoaofAustraliaLimited,AlcoaAustralianPtyLtdandAluminaLimited,originallydatedasofMay10,1996(incorporatedbyreferencetoExhibit10.13toAmendmentNo.2totheCompany’sRegistrationStatementonForm10filedSeptember1,2016(FileNo.1-37816))

10.14 KwinanaStateAgreementof1961(incorporatedbyreferencetoExhibit10.7toAmendmentNo.2totheCompany’sRegistrationStatementonForm10filedSeptember1,2016(FileNo.1-37816))

10.15 PinjarraStateAgreementof1969(incorporatedbyreferencetoExhibit10.8toAmendmentNo.2totheCompany’sRegistrationStatementonForm10filedSeptember1,2016(FileNo.1-37816))

10.16 WagerupStateAgreementof1978(incorporatedbyreferencetoExhibit10.9toAmendmentNo.2totheCompany’sRegistrationStatementonForm10filedSeptember1,2016(FileNo.1-37816))

10.17 AluminaRefineryAgreementof1987(incorporatedbyreferencetoExhibit10.10toAmendmentNo.2totheCompany’sRegistrationStatementonForm10filedSeptember1,2016(FileNo.1-37816))

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ExhibitNo.

Description of Exhibit

10.18 FrameworkAgreement,datedJune26,2019,betweenSaudiArabianMiningCompany(Ma’aden)andAlcoaCorporation(incorporatedbyreferencetoExhibit10.1totheCompany’sQuarterlyReportonForm10-QfiledJuly31,2019(FileNo.1-37816))

10.19 AmendmentandRestatementDeeddatedJune26,2019relatingtotheAluminiumProjectFrameworkShareholders’AgreementoriginallydatedDecember20,2009betweenSaudiArabianMiningCompany(Ma’aden)andAlcoaCorporation(incorporatedbyreferencetoExhibit10.2totheCompany’sQuarterlyReportonForm10-QfiledJuly31,2019(FileNo.1-37816))

10.20 AlcoaCorporation2016StockIncentivePlan(asAmendedandRestatedasofMay9,2018),(incorporatedbyreferencetoExhibit99.1totheCompany’sCurrentReportonForm8-KfiledMay15,2018(FileNo.1-37816))*

10.21 AlcoaUSACorp.DeferredCompensationPlan(incorporatedbyreferencetoExhibit10.2toAmendmentNo.1totheCompany’sRegistrationStatementonForm10filedAugust12,2016(FileNo.1-37816))*

10.22 AlcoaUSACorp.NonqualifiedSupplementalRetirementPlanC(incorporatedbyreferencetoExhibit10.3toAmendmentNo.1totheCompany’sRegistrationStatementonForm10filedAugust12,2016(FileNo.1-37816))*

10.23 Amendment1toAlcoaUSACorp.NonqualifiedSupplementalRetirementPlanC,effectiveJanuary1,2021(incorporatedbyreferencetoExhibit10.9totheCompany’sAnnualReportonForm10-KfortheyearendedDecember31,2017,filedFebruary23,2018(FileNo.137816))*

10.24 FormofAmendedandRestatedIndemnificationAgreementbyandbetweenAlcoaCorporationandindividualdirectorsorofficers,effectiveAugust1,2017(incorporatedbyreferencetoExhibit10.5totheCompany’sQuarterlyReportonForm10-QfiledAugust3,2017(FileNo.1-37816))*

10.25 AlcoaCorporationAnnualCashIncentiveCompensationPlan(asAmendedandRestated),effectiveFebruary21,2018(incorporatedbyreferencedtoExhibit10totheCompany’sQuarterlyReportonForm10-QfiledMay9,2018(FileNo.1-37816))*

10.26 AlcoaCorporationAmendedandRestatedChangeinControlSeverancePlan,datedJuly30,2019(incorporatedbyreferencetoExhibit10.5totheCompany’sQuarterlyReportonForm10-QfiledOctober31,2019(FileNo.1-37816))*

10.27 AmendedandRestatedFormofAlcoaCorporationChiefExecutiveOfficerandChiefFinancialOfficerExecutiveSeveranceAgreement,effectiveasofJuly30,2019(incorporatedbyreferencetoExhibit10.6totheCompany’sQuarterlyReportonForm10-QfiledOctober31,2019(FileNo.1-37816))*

10.28 AmendedandRestatedFormofAlcoaCorporationCorporateOfficerExecutiveSeveranceAgreement,effectiveasofJuly30,2019(incorporatedbyreferencetoExhibit10.7totheCompany’sQuarterlyReportonForm10-QfiledOctober31,2019(FileNo.1-37816))*

10.29 TermsandConditionsforEmployeeStockOptionAwards(incorporatedbyreferencetoExhibit10.30totheCompany’sRegistrationStatementonFormS-1filedJanuary18,2017(FileNo.333-215606))*

10.30 TermsandConditionsforEmployeeStockOptionAwards,datedJanuary24,2018(incorporatedbyreferencetoExhibit10.30totheCompany’sAnnualReportonForm10-KfortheyearendedDecember31,2017,filedFebruary23,2018(FileNo.137816))*

10.31 TermsandConditionsforEmployeeRestrictedShareUnits,effectiveOctober1,2019(incorporatedbyreferencetoExhibit10.2totheCompany’sQuarterlyReportonForm10-QfiledOctober31,2019(FileNo.1-37816))*

10.32 TermsandConditionsforEmployeeStockOptionAwards,effectiveOctober1,2019(incorporatedbyreferencetoExhibit10.3totheCompany’sQuarterlyReportonForm10-QfiledOctober31,2019(FileNo.1-37816))*

10.33 TermsandConditionsforEmployeeSpecialRetentionAwards,effectiveOctober1,2019(incorporatedbyreferencetoExhibit10.4totheCompany’sQuarterlyReportonForm10-QfiledOctober31,2019(FileNo.1-37816))*

10.34 LetterAgreement,datedDecember17,2018,betweenJohnSlavenandAlcoaCorporation(incorporatedbyreferencetoExhibit10.36totheCompany’sAnnualReportonForm10-KforthefiscalyearendedDecember31,2019,filedFebruary21,2020(1-37816))*

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ExhibitNo.

Description of Exhibit

10.35 AlcoaCorporationNon-EmployeeDirectorCompensationPolicy,effectiveSeptember24,2020(incorporatedbyreferencetoExhibit10.1totheCompany’sQuarterlyReportonForm10-QfiledOctober30,2020(FileNo.1-37816))*

10.36 TermsandConditionsforDeferredFeeRestrictedShareUnitsDirectorAwards,effectiveDecember1,2016(incorporatedbyreferencetoExhibit10.34totheCompany’sRegistrationStatementonFormS-1filedJanuary18,2017(FileNo.333-215606))*

10.37 TermsandConditionsforRestrictedShareUnitsAnnualDirectorAwards,effectiveDecember1,2016(incorporatedbyreferencetoExhibit10.35totheCompany’sRegistrationStatementonFormS-1filedJanuary18,2017(FileNo.333-215606))*

10.38 TermsandConditionsforRestrictedShareUnitsAnnualDirectorAwards,effectiveMay9,2017(incorporatedbyreferencetoExhibit10.3totheCompany’sQuarterlyReportForm10-QfiledAugust3,2017(FileNo.1-37816))*

10.39 AlcoaCorporation2016DeferredFeePlanforDirectors,effectiveNovember1,2016,asamendedandrestatedonDecember5,2018(incorporatedbyreferencetoExhibit10.37totheCompany’sAnnualReportonForm10-KforthefiscalyearendedDecember31,2019,filedFebruary26,2019(1-37816))*

21.1 ListofSubsidiaries

23.1 ConsentofPricewaterhouseCoopersLLP

31.1 CertificationofPrincipalExecutiveOfficerrequiredbySecuritiesandExchangeCommissionRule13a-14(a)or15d-14(a)

31.2 CertificationofPrincipalFinancialOfficerrequiredbySecuritiesandExchangeCommissionRule13a-14(a)or15d-14(a)

32.1 CertificationofPrincipalExecutiveOfficer,requiredbyRule13a-14(b)orRule15d-14(b)andSection1350ofChapter63ofTitle18oftheUnitedStatesCode

32.2 CertificationofPrincipalFinancialOfficer,requiredbyRule13a-14(b)orRule15d-14(b)andSection1350ofChapter63ofTitle18oftheUnitedStatesCode

95.1 MineSafetyDisclosure

99.1 AmendedandRestatedGrantorTrustAgreementbyandbetweenAlcoaCorporationandWellsFargoBank,NationalAssociation,effectiveOctober24,2017(incorporatedbyreferencetoExhibit99.1totheCompany’sAnnualReportonForm10-KfortheyearendedDecember31,2017,filedFebruary23,2018(FileNo.137816))

101.INS InlineXBRLInstanceDocument

101.SCH InlineXBRLTaxonomyExtensionSchemaDocument

101.CAL InlineXBRLTaxonomyExtensionCalculationLinkbaseDocument

101.DEF InlineXBRLTaxonomyExtensionDefinitionLinkbaseDocument

101.LAB InlineXBRLTaxonomyExtensionLabelLinkbaseDocument

101.PRE InlineXBRLTaxonomyExtensionPresentationLinkbaseDocument

104 CoverPageInteractiveDataFile(formattedasInlineXBRLandcontainedinExhibit101)

Certainschedulesexhibits,andappendiceshavebeenomittedinaccordancewithtoItem601(a)(5)ofRegulationS-K.TheCompanyherebyundertakestofurnishcopiesofanyomittedschedule,exhibit,orappendixtotheCommissionuponrequest.

* DenotesmanagementcontractsorcompensatoryplansorarrangementsrequiredtobefiledasExhibitstothisForm10-K.

Item 16. Form 10-K Summary.

Notapplicable.

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SIGNATURES

PursuanttotherequirementsofSection13or15(d)oftheSecuritiesExchangeActof1934,theregistranthasdulycausedthisreporttobesignedonitsbehalfbytheundersigned,thereuntodulyauthorized. ALCOA CORPORATION

By: /s/MollyS.Beerman

MollyS.Beerman

SeniorVicePresidentandController

PursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbelowbythefollowingpersonsonbehalfoftheregistrantandinthecapacitiesindicatedandasofFebruary25,2021. /s/RoyC.Harvey /s/WilliamF.Oplinger

RoyC.HarveyPresident,ChiefExecutiveOfficerandDirector(PrincipalExecutiveOfficerandDirector)

WilliamF.OplingerExecutiveVicePresidentandChiefFinancialOfficer(PrincipalFinancial

Officer)

/s/MollyS.Beerman MollyS.Beerman

SeniorVicePresidentandController(PrincipalAccountingOfficer)

/s/StevenW.Williams

StevenW.WilliamsDirector,ChairmanoftheBoardofDirectors

/s/MaryAnneCitrinoMaryAnneCitrino

Director

/s/PasqualeFiorePasqualeFiore

Director

/s/TimothyP.FlynnTimothyP.Flynn

Director

/s/KathrynS.FullerKathrynS.Fuller

Director

/s/JamesA.HughesJamesA.Hughes

Director

/s/MichaelG.MorrisMichaelG.Morris

Director

/s/JamesE.NevelsJamesE.Nevels

Director

/s/CarolL.RobertsCarolL.Roberts

Director

/s/SuzanneSitherwoodSuzanneSitherwood

Director

/s/ErnestoZedilloErnestoZedillo

Director

123

Exhibit 21.1

SUBSIDIARIES OF THE REGISTRANT

Name

StateorCountryofOrganization

Alcoa-AluminerieDeDeschambaultL.P. CanadaAlcoaAlumínioS.A. BrazilAlcoaCanadaCo. CanadaAlcoaFjarðaálsf IcelandAlcoaHollandB.V. NetherlandsAlcoaInespalS.L.U. SpainAlcoaNederlandHoldingB.V. NetherlandsAlcoaNorwayANS NorwayAlcoaofAustraliaLimited1 AustraliaAlcoaPowerGeneratingInc.2 TennesseeAlcoaSaudiSmeltingInversionesS.L.U. SpainAlcoaTreasuryS.a.r.l. SwitzerlandAlcoaUSACorp. DelawareAlcoaUSAHoldingCompany DelawareAlcoaWarrickLLC DelawareAlcoaWolinbecCompany CanadaAlcoaWorldAluminaLLC1,3 DelawareAlcoaWorldAluminaBrasilLtda.1 BrazilAWASaudiLimited1 HongKongAlcoa-LauralcoManagementCompany CanadaAluminaEspañola,S.A.1 SpainAlumínioEspañol,S.L.U. SpainEstreitoEnergiaS.A. BrazilLuxcoaS.a.r.l. LuxembourgRBSalesCompany,Limited DelewareReynoldsBécancour,Inc. DelawareReynoldsMetalsCompany,LLC DelawareSurinameAluminumCompany,L.L.C.1 Delaware

Thenamesofparticularsubsidiarieshavebeenomittedbecause,consideredintheaggregateasasinglesubsidiary,theywouldnotconstitute,asoftheendoftheyearcoveredbythisreport,a“significantsubsidiary”asdefinedinRegulationS-XundertheSecuritiesExchangeActof1934,asamended.1 PartoftheAWACjointventure.2 RegisteredtodobusinessinTennesseeunderthenamesAPGTradingandTapoco,inNewYorkunderthenameLongSault,inIndianaunderthenameAGC,

andinWashingtonunderthenameofColockum.3 RegisteredtodobusinessinPennsylvaniaandTexasunderthenameofAlcoaWorldChemicals.

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

WeherebyconsenttotheincorporationbyreferenceintheRegistrationStatementonFormS-8(Nos.333-214420,333-214423,333-218038,and333-228258)ofAlcoaCorporationofourreportdatedFebruary25,2021relatingtothefinancialstatementsandtheeffectivenessofinternalcontroloverfinancialreporting,whichappearsinthisForm10-K.

/s/PricewaterhouseCoopersLLP

PricewaterhouseCoopersLLPPittsburgh,PennsylvaniaFebruary25,2021

Exhibit 31.1

CERTIFICATIONS

I,RoyC.Harvey,certifythat:

1. IhavereviewedthisannualreportonForm10-KofAlcoaCorporation;

2. Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethe

statementsmade,inlightofthecirc*mstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;

3. Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthe

financialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,theperiodspresentedinthisreport;

4. Theregistrant’sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedin

ExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(asdefinedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:

(a) Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderour

supervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringtheperiodinwhichthisreportisbeingprepared;

(b) Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunder

oursupervision,toprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples;

(c) Evaluatedtheeffectivenessoftheregistrant’sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsaboutthe

effectivenessofthedisclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and

(d) Disclosedinthisreportanychangeintheregistrant’sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant’smost

recentfiscalquarter(theregistrant’sfourthfiscalquarterinthecaseofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant’sinternalcontroloverfinancialreporting;and

5. Theregistrant’sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,tothe

registrant’sauditorsandtheauditcommitteeoftheregistrant’sboardofdirectors(orpersonsperformingtheequivalentfunctions):

(a) Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhichare

reasonablylikelytoadverselyaffecttheregistrant’sabilitytorecord,process,summarizeandreportfinancialinformation;and

(b) Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant’s

internalcontroloverfinancialreporting. Date:February25,2021 /s/RoyC.Harvey Name: RoyC.Harvey

Title:

PresidentandChiefExecutiveOfficer

Exhibit 31.2

CERTIFICATIONS

I,WilliamF.Oplinger,certifythat: